Rise in mortgage delinquencies
The Wall Street Journal reported that one credit bureau TransUnion forecasted that the ratio of consumers with mortgages that are two months or more past-due will hit 7.17% at the end of 2009, up from an expected 4.67% at the end of this year, that would be the highest level in 16 years. The article also stated that Transunion sees mortgage delinquencies continue to rise un until the first quarter of 2010.
TransUnion LLC, which analyzed about 27 million consumer records, put the blame on adjustable-rate mortgages underwritten during the housing boom. It sees low teaser rates ending and borrowers unable to afford the higher rates. Layoffs will also play a factor.