Mortgage Delinquencies Hit Record High; BofA Plans Massive Foreclosures

Mortgage delinquencies hit a record high in the first quarter of 2010, according to “The Washington Post”:

The number of U.S. homeowners who are behind on their mortgages rose to a record level in the first quarter, according to industry data released Wednesday … .

–Snip—

The increase in mortgage delinquency was a surprising and unwelcome sign for economists expecting the recent improvements in the economy to translate into fewer homeowners falling into trouble.

On a seasonally adjusted basis, about 10 percent of borrowers were delinquent on their mortgages during the first three months of this year — a record, according to the survey by the Mortgage Bankers Association. That is up from about 9.1 percent during the same period last year and 9.5 percent during the fourth quarter of 2009.

WaPo adds in some happy talk about unrelated promising economic signs, but what I see is more and more people in danger of losing their homes. TARP may have saved the banksters, but it is not working for ordinary Americans. The Masters of the Universe continue to declare record profits to justify their record bonuses, but people are still losing their houses. I also have my own doubts about whether those profits are really profits or just the product of more accounting sleight of hand.

A blogger called Irvine Renter broke the story that Bank of America plans to increase its rate of foreclosures by 600 percent in 2010.

[Irvine Renter] attended a local Building Industry Association conference on Friday 26 March 2010. The west coast manager of real estate owned, Senior Vice President Ken Gaitan, stated that Bank of America, which currently forecloses on 7,500 homes a month nationally, will increase that number to 45,000 homes per month by December of 2010.

After his surprising statement, two questioners from the audience asked questions to verify the numbers.

Bank of America is projecting a 600% increase in its already large number of monthly foreclosures.

This isn’t unsubstantiated rumor; this comes straight from one of the most powerful men in Bank of America’s OREO department (yes, that really is what they call it). It appears they have too many properties already.

[emphasis in original]

BofA clearly does not see any relief coming to homeowners this year.

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