The delinquency rate for mortgage loans on residential properties in Indiana was 9.76 percent at the end of the fourth quarter of 2011, an increase of 15 basis points from the third quarter of 2011, according to the Mortgage Bankers Association (MBA). The delinquency rate excludes loans in the process of foreclosure. The percentage of loans in Indiana on which foreclosure was started during the quarter remained unchanged at 0.99 percent, while the percentage of loans in the foreclosure process at the end of the quarter rose eight basis points to 4.94 percent.
The delinquency rate for prime adjustable-rate mortgages (ARMs) decreased 47 basis points to 9.61 percent and the rate for prime fixed rate mortgage loans increased nine basis points to 5.01 percent. The delinquency rate for sub-prime ARMs decreased 85 basis points to 25.96 percent, while the rate for sub-prime fixed rate loans decreased 42 basis points to 22.85 percent.
The delinquency rates for FHA and VA loans were 14.21 percent and 8.77 percent, respectively—up 57 basis points for FHA loans and up 17 basis points for VA loans.
The foreclosure starts rate for prime ARMs in Indiana increased 10 basis points to 1.29 percent, while the rate for prime fixed rate loans increased 1 basis point to 0.64 percent. The foreclosure starts rate for sub-prime ARMs decreased 127 basis points to 2.76 percent, while the rate for sub-prime fixed rate loans decreased 12 basis points to 1.82 percent.
The percentage of prime ARMs in foreclosure decreased 28 basis points to 6.78 percent and decreased five basis points to 3.11 percent for prime fixed rate loans. The rate for sub-prime ARMs decreased 37 basis points to 19.73 percent, while the rate for sub-prime fixed rate loans increased 13 basis points to 10.29 percent. The percentage of FHA loans in foreclosure increased 44 basis points to 5.09 percent. The percentage of VA loans in foreclosure increased 29 basis points to 4.39 percent.
Among the 50 states and the District of Columbia, Indiana ranked seventh in delinquencies and 17th in foreclosures started. Mississippi ranked first in delinquencies with a rate of 13.13 percent and Florida ranked first in foreclosure starts with a rate of 1.68 percent.
On a national level, the delinquency rate for mortgage loans on one- to four-unit residential properties was 8.15 percent on a non-seasonally adjusted basis, down five basis points from 8.20 percent in the third quarter of 2011. The seasonally adjusted delinquency rate on residential properties was 7.58 percent in the third quarter, down 41 basis points from last quarter’s seasonally adjusted rate. The non-seasonally adjusted percentage of loans on which foreclosure was started during the quarter decreased nine basis points to 0.99 percent, while the non-seasonally adjusted percentage of loans in the foreclosure process at the end of the quarter decreased five basis points to 4.38 percent.
