Late Mortgage Payments Skyrocket in Q3

Y’all, it’s a mess out there – late mortgage payments as far as the eye can see. In fact, according to a recent Associated Press story, late mortgage payments shot up in the third quarter as higher interest rates squeezed budgets and made it harder for homeowners — especially those with weaker credit records — to keep up.

Delinquency rates in the third quarter were considerably higher for "subprime" borrowers—people with weaker credit records who are considered higher risks.

People holding adjustable-rate mortgages have seen their payments rise as the Federal Reserve ratcheted up short-term interest rates during the last two-plus years.

For an interesting analysis of how mortgage arrears might impact the ARM industry, please see this recent column on the topic written by Mike Ginsberg, President and CEO of Kaulkin Ginsberg Company.

Kaulkin Ginsberg Company is the parent company of Kaulkin Media and CollectionIndustry.com.