Jumbo mortgage delinquencies could reach as high as 10 percent, Fitch Ratings reported, as defaults on prime jumbo mortgages continue to rise.

As serious delinquencies climbed for the 32nd consecutive month, loan performance among RMBs’s (private residential mortgage-backed securities) showed continued weakness.

Overall, jumbo mortgage RBMS at a minimum of 60 days past due grew to an astounding 9.6 percent last month, a rise from 9.2 percent the previous month, Fitch’s data shows.

The firm claims prime jumbo mortgage delinquencies accelerated in 2009, although they began to rise in mid-2007, almost tripling throughout the year. Although, Fitch does note that pre-2005 jumbo mortgage loan delinquencies still remain much lower than the most recent originations.

The five states – Florida, Virginia, California, New Jersey and New York – which all remain as the states with highest volume of prime jumbo mortgage outstanding, comprise about 2/3 of the $381b jumbo mortgage market.

Although the largest jump of the above five was Florida which although holding 6% of the market share, now retains the worst serious jumbo mortgage delinquency rate of 16.6%.

Related posts:

1. Jumbo Mortgages Rapid Deterioration Leads Moody’s to Increase Loss Projections
2. December Hike in Number of N.J. Jumbo Mortgage Defaults
3. Is the Jumbo mortgage market beginning to thaw?
4. Jumbo Mortgage Delinquencies Soar
5. Lenders easing up on jumbo mortgages

foreclosures · housing market · jumbo mortgage

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