Click Here

REALTORŪ Magazine Online: The real estate professional's business support tool.


Daily Real Estate News  |  June 30, 2011  |   Banks' Portfolios Still Plagued by Bad Loans
Nearly 20 percent of mortgages in banks’ portfolios were delinquent at the end of March, according to a report released this week by the Office of the Comptroller of the Currency, a bank regulator.

The government-sponsored enterprises are faring better in their portfolios: About 6.8 percent of mortgages backed by mortgage giants Fannie Mae and Freddie Mac were nonperforming, the report says.

However, the differences between the nonperforming rate of bank-held mortgages versus the GSEs may be explained in how foreclosures are being processed, Bruce Krueger, a senior OCC mortgage examiner, told The Wall Street Journal.

While the GSEs require mortgage servicers to follow certain timelines for loan modifications and foreclosures, banks do not. As such, delinquent borrowers with bank-held loans often linger longer before the foreclosure process is even initiate as well as often spend more time in foreclosure before being evicted.

With banks, nearly 8 percent of mortgages were in foreclosure at the end of March, compared with 2.6 percent of mortgages backed by Fannie Mae and Freddie Mac.

Source: “Bad Mortgages Weigh on Banks,” The Wall Street Journal (June 30, 2011)

Browse all of today's news
E-mail this page to a friend
Give us feedback

Search news
Launch my search
Subscribe to news
Subscribe to News
Daily and weekly real estate news, trends, NAR press releases, convention coverage, plus exclusive features and columns.

RSS Feed
Get the Daily Real Estate News delivered straight to your desktop or news aggregator. (New to RSS? Learn the basics here.)
How did you sell it?
Tell us how you overcame hurdles to sell a challenging or very unique listing!