Delinquent Loans May Still Be Distressing Housing Industry
Since the 2007 recession, most of America has believed our economy is on a steady incline and we are free and clear of another recession. According to Keith Jurow, in his article written “Why bubble-era home mortgages are a disaster waiting to happen” this is actually not the case.
“The truth is these mortgages are still dangerous and could soon undermine the housing recovery.”
The below chart shows the drastic increase in loans delinquent more than 5 years… Hawaii (for example) once only had 4% delinquency rate went up to 67% in 2018.
His explanation points to factors such as homeowners who stop paying their mortgages without consequences…
Jurow’s claims are strengthened by the actions of Fannie Mae and Black Knight Financial Services. These companies regularly provide delinquency rate statistics, but for the past 2 years, the data has not been provided. The last available stats showed the re-default rates were nearly 40%.