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Copyright © 2012 Albuquerque Journal
New Mexico saw fewer homeowners fall behind on their mortgage payments at the end of 2011 compared to a year earlier, reflecting a trend around the country, according to a report released Thursday by the Mortgage Bankers Association.
The state’s delinquency rate was 6.7 percent in the fourth quarter, a slight uptick from the third quarter but down from 7.1 percent in the fourth quarter of 2010. New Mexico had the 36th highest delinquency rate among states at the end of 2011.
The average delinquency rate nationwide was 8.1 percent in the fourth quarter, down from 8.9 percent a year earlier, the association reported in its National Delinquency Survey. Mississippi had the highest delinquency rate at 13.1 percent, followed by Georgia at 11.3 percent.
“The improvements we have seen are clearly tied to improvements in the economy,” said Jay Brinkmann, the association’s chief economist, in a conference call with the media.
The delinquency rate does not include homes in foreclosure. A delinquent mortgage is 30 days or more past due on payments.
Looking back at year-end delinquency rates, New Mexico saw its rate jump from 4.6 percent in 2007 to 6.4 percent in 2008, followed by another big jump to 8.3 percent in 2009. The rate has been trending downward since then.
Nationwide, the average rate jumped from 6.3 percent in 2007 to 8.6 percent in 2008, then 10.4 percent in 2009. As with New Mexico, the national delinquency rate has been trending downward since.
The Mortgage Bankers Association reported 4 percent of all outstanding mortgages in New Mexico were somewhere in the foreclosure process during the fourth quarter, compared to 4.4 percent nationwide.
New Mexico’s relatively high foreclosure rate is typical of the 21 states where foreclosures are handled through state courts. The average foreclosure rate in states with a judicial process is 6.8 percent, compared to 2.8 percent in non- judicial states, the association reported.
