Profits and Balance Sheet Developments at U.S. Commercial Banks in 2006
Credit Quality of Subprime Residential Mortgages, Figure B. Rate of serious delinquency on subprime residential mortgages, by type of interest rate, 2000-07. Data plotted as curves. The rate of serious delinquency on fixed-rate subprime residential mortgages starts in October 2000 at about 6.1 percent, rises on balance to about 8.7 percent in early 2002, declines on balance to 5.3 percent by early 2005, rises briefly to 5.9 percent at the end of 2005 before declining back down to 5.3 percent by early 2006, and then generally remains around that level through March 2007. The rate of serious delinquency on variable-rate subprime residential mortgages starts in October 2000 at about 8.4 percent, rises on balance to 10.6 percent in early 2002, declines on balance to 5.6 percent in early 2005, and then rises almost continuously to 11.3 percent in March 2007.
NOTE: The data are monthly and extend through March 2007. Seriously delinquent loans are ninety days or more past due or in foreclosure.
SOURCE: First American LoanPerformance.