Mortgage Defaults On Rise
According to AIG, mortgage delinquency is on the rise. Reported on CNN, that 10.8% of subprime mortgages were 60 days past when payment was due. Currently AIG is classifying home loan borrowers as “subprime” if their credit scores are below 620. Also, according to the CNN article, the delinquency rate for overall first mortgages is right at 4%. What does this all mean? It continues to look like the housing and mortgage industry is very shaky and what was the bottom that fell out of the subprime lending market, might not have been the bottom at all. It is also being reported that more and more people, as a last resort before foreclosure, are trying to sell then rent back their homes.
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