Profits and Balance Sheet Developments at U.S. Commercial Banks in 2006
Credit Quality of Subprime Residential Mortgages, Figure A. Rate of serious delinquency on residential mortgages, by loan category, 2000-07. Data plotted as curves. The rate of serious delinquency on all residential loans starts in 2000 at about 0.9 percent, drifts up to about 1.3 percent in mid-2001, remains around that level through mid-2006, and then rises to around 1.6 percent in the first quarter of 2007. The rate of serious delinquency on prime residential loans starts in 2000 at about 0.4 percent, generally remains in the range of 0.4 percent to 0.5 percent through mid-2006, and then edges up to 0.6 percent by the first quarter of 2007. The rate of serious delinquency on subprime residential loans starts in 2000 at about 3.3 percent, dips to 2.2 percent in mid-2000, rises on balance to 5.8 percent in mid-2002, declines on balance to 3.8 percent in mid-2004, remains around that level through the third quarter of 2005, and then rises on balance to about 5.8 percent in the first quarter of 2007.
NOTE: The data are quarterly and extend through 2007:Q1. Seriously delinquent loans are ninety days or more past due or in foreclosure.
SOURCE: Mortgage Bankers Association, National Delinquency Survey.