(From an Article in the Denver Business Journal, Sept. 5, 2008)
Colorado ranked 41st in the nation in mortgage delinquencies in the second quarter, down from 39th in the first quarter, accord to data released Friday by the Mortgage Bankers Association.
Meanwhile, the percentage of Colorado loans on which foreclosure was started in the April-though-June quarter fell three basis points to 0.84 percent.
“The national foreclosure numbers continue to be driven by the hardest-hit states continuing to get much worse,” Jay Brinkmann, the MBA’s chief economist, said in a statement. “The increases in foreclosures in California and Florida overwhelmed improvements in states like Texas, Massachusetts and Maryland.” California and Florida accounted for 39 percent of all foreclosures started during the second quarter, and 73 percent of the increase in foreclosures between the first and second quarters. Only eight states had rates of foreclosure starts that were above the national average: Nevada, Florida, California, Arizona, Michigan, Rhode Island, Indiana and Ohio. The remaining 42 states plus the District of Columbia were below the national average.
“The other factor that continues to drive foreclosure rates is loan type,” Brinkmann said. “Subprime [adjustable-rate mortgage] loans accounted for 36 percent of all foreclosures started and prime ARMs, which include option ARMs, represented 23 percent.”
Colorado had 20 percent nonprime borrowers, compared with a national average of 19 percent.
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