Defaults on Insured U.S. Mortgages Increase 35% to Record as Slump Deepens

[Purveyor]

Source: Bloomberg News

Dec. 31 (Bloomberg) -- Defaults on privately insured U.S. mortgages rose 35 percent in November to a record, an industry report today showed, adding to evidence the U.S. housing slump is deepening.

The number of insured borrowers falling more than 60 days late on payments jumped to 61,033 last month from 45,325 in November 2006, according to data from members of the Washington- based Mortgage Insurance Companies of America. The missed payments, often a prelude to foreclosure, represented a 2.9 percent increase from October.

``This is another data point that suggests that the mortgage insurers are in for a tough slog for 2008,'' said David Havens, a credit analyst at UBS AG in Stamford, Connecticut. ``Continued deterioration is likely to spur higher claims. And higher claims activity may result in some companies needing to raise money.''

Home prices fell 6.1 percent in 20 U.S. metropolitan areas in October, according to S&P/Case-Shiller. Mortgage insurance compensates lenders for losses as falling home prices make it harder for borrowers to refinance.

Read more: http://www.bloomberg.com/apps/news?pid=20601103&sid=api...

[Roland99]

1. This is the mortgage insurance industry's Katrina.

[mbperrin]

2. So WHEN does a SLUMP finally become

an admitted disaster? And when will anyone in the industry admit that they did it to themselves?

[sarcasmo]

4. When a Democratic Candidate wins the Whitehouse then and only then will this be front page news.

It's the old pass the buck strategy.

[SpiralHawk]

3. "Don't worry. I'm in charge." - Commander AWOL

"As usual, me and my republicon cronies will do a heckuva job on this financial mess. Smirk."

- Commander AWOL