Monday, April 10, 2006

Texas And Michigan Lead In Defaults, REO's

Fitch Ratings has this report on loan delinquencies. "CMBS delinquencies have been steadily trending downward since hitting their peak at the end of 2003. Although most markets are performing well today, a lingering legacy may remain from the recent real estate downturn (2001-2003). The delinquency index is heavily weighted toward loans in foreclosure and REO properties (61.2% by balance) when stratified by loan status."

"'The majority of loans in foreclosure and REO properties (88%) were secured in older vintage deals issued between 1997 and 2001,' according to Fitch Senior Director Patty Bach."

"The largest dollar concentration of foreclosures and REOs are located in Texas (23%) and Michigan (13%), both power-of-sale states that allow quicker loan transitions from foreclosure to REO."

"Katrina-related delinquencies dropped 7% by balance on the month and now stand at $187.3 million. REO properties rose to 20.7% of Katrina-related delinquencies up 260bps from last month. 'Katrina delinquencies are declining overall, but chronic delinquencies (90-day delinquencies and REO properties) now total $180.9 million (96.6% of all Katrina delinquencies), 6% ($9.8 million) higher than last month.' stated Bach."


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