Mortgage Bankers Association

The latest report published by the Mortgage Bankers Association numbers Avon revealed that when the mortgage market is involved in the most terrible crises in the history of foreclosure. It is almost 15 percent of subprime borrowers in default and borrowers first began to follow suit. Over recent years, many people purchased through soft loans and adjustable-rate mortgages and big animalshomes, and if house prices go up and will be non-profit.

The rate of exclusion in the last quarter has surpassed the highest point recorded 54 years back in the spring of 1953, the number of subprime borrowers, those who are behind on their mortgages rose to 14.82 percent. The homes purchased with 2 / 28 adjustable-rate mortgages are among the highest percentage of exclusion. The credit crunch is not only the creation of guidesfinancing more difficult, but it is also pushing more homeowners by exclusion.

According to the latest poll Mortgage Bankers Association, the foreclosure crisis tend to be in the near future. Since the last quarter, about the foreclosure rates in states like California, Florida, Arizona, Indiana and a few others have touched the sky, so the expectation is that the foreclosure problem will worsen in the years before stabilizes again.

It is expected that the number of foreclosures and overdue payback to grow during this quarter and next quarter also. Given that mortgage rates are rising high again due to a fall in house prices, was the act of refinancing more difficult for existing borrowers who are not familiar with their course in progress and want to refinance at a lower rate.

According to the Mortgage Bankers> Association, the main reason for the foreclosure crisis is the 2 / 28 adjustable-rate mortgages and the economic situation, which is under pressure. Most of the foreclosures in the mortgage market is a result of these adjustable rate mortgages typically offer lower initial interest rates and when the price until after a few years, most homeowners find it difficult to get the monthly payments for reply. Most adjustable-rate mortgages scheduled to resetthis year and in coming years, it is likely that the rate of exclusion will increase during this period.

After the Federal Reserve seeks to stabilize and control of the mortgage market through the roof of the federal funds rate. The Democratic leaders are also worried about the market situation. Last week, the chairman of the board asked to appoint a person as the authority on the federal context, and coordinate with the governmentto reduce the growing number of foreclosures House. They also proposed for 200 million dollars in aid to prevent foreclosure.

The Democratic leaders have also proposed that the government approved non-profit money to help homeowners facing difficulties making mortgage payments. If this is not the program, at least the media can be a cause for temporary smile on the faces of homeowners and lenders.