The third quarter 2011 survey by the Mortgage Banker’s Association shows that Alaska continues to have the lowest level of problematic subprime residential loans in the country. The report also indicates Alaska has comparatively low levels of delinquencies and foreclosures for all types of mortgage loans in the United States. For the last two years in Alaska the percentage of foreclosures started in a given quarter were about 0.5% of the total number of mortgages outstanding. This improved to 0.4% in the second quarter of 2011, where it remains and is less than half the national average of 1.1%. The total inventory of foreclosures in process is only 0.9% in Alaska, while the country has a much larger lingering foreclosure inventory at 4.4% due to higher rates during the recession and longer resolution times. Subprime lending to traditionally non-qualified borrowers was a large contributing factor to the national mortgage problems.
The rate of delinquencies and foreclosures on subprime loans is significantly higher. However, Alaska is in a far better position and again leads the nation in this important category. Subprime foreclosures in Alaska are at 4.2% while the national average is 14.8%. The survey covers just over 95,000 mortgages in Alaska and approximately 7,400 or 8% were considered subprime. Of those 7,400 subprime loans, Alaska’s subprime delinquency rate is 10.8% compared to the national average of 23.1%. Delinquent loans are more than 30 days past due, but not yet in foreclosure. Alaska’s rate is 6% lower than the second place state Colorado at 16.5%. Alaska does trail North Dakota, South Dakota and Montanta in the level of overall delinquent loans, ranking fourth best out of 50 states. Alaska’s delinquency rate is 4.5%, while the U.S. average is 8.2% for all loan types.
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