The MBA data show that overall mortgage delinquencies 30 days past due in the two states have fallen since the month immediately after Hurricane Katrina struck. Overall mortgage delinquencies were 24.6 percent in Louisiana and 17.4 percent in Mississippi as of the end of September, but have fallen to 20.8 percent in Louisiana and 16.9 percent in Mississippi as of the end of December.  As expected, a majority of the loans that were only 30 days delinquent in September are now in the 90 days or more seriously delinquent category.

In contrast to the delinquency percentages, and as a result of the mortgage industry’s forbearance programs, the number of new foreclosures started fell to only 0.16 percent of the mortgages in Louisiana and 0.26 percent in Mississippi, down from 0.67 percent and 0.78 percent respectively in the period last year.  In comparison, the national average for foreclosures started stands at 0.42 percent.

“A sizable portion of these delinquencies are due to borrowers availing themselves of the forbearance programs many lenders have had in place since September.  These programs postpone when mortgage payments are due but do not cancel the mortgage debt.  Nevertheless, the fact that we have almost 76,000 people who have not been able to resume making their mortgage payments, most as a direct result of Hurricane Katrina, points to the need to get a housing and economic development program funded and under way in Louisiana, and build support for the initiatives already undertaken in Mississippi,” said Jay Brinkmann, vice president of Research and Economics at MBA. 

“It is also important to realize that a number of homeowners continue to meet their financial obligations despite not being able to occupy their homes or being temporarily relocated for other reasons.  These people are putting their faith and money into their expectations of a recovery along the Gulf Coast and those expectations must be met,” Brinkmann added.

In Louisiana, 16.1 percent of prime loans were delinquent, 33.9 percent of subprime loans and 31.8 percent of FHA loans.  In Mississippi, 11.8 percent of prime loans were delinquent, 31.1 percent of subprime loans and 24.9 percent of FHA loans.

For seriously delinquent loans, those delinquent 90 days or more or in foreclosure, the percentage of prime loans was 9.7 percent, 24.3 percent for subprime and 21.1 percent for FHA.  In Mississippi the percentages were 6.3 percent for prime loans, 19.8 percent for subprime and 13.5 percent for FHA.

The complete MBA National Delinquency Survey will be released on Thursday, March 16.

Last month, MBA released a study reflecting the estimated cost of flood damages in New Orleans and Louisiana.  The study can be found under Related Document(s).

MBA National Delinquency Survey Chart for Mississippi and Louisiana

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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 370,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,400 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site:  www.mortgagebankers.org.