The fourth 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. Alaska ranks third best out of all 50 states in both categories.
For the last two years in Alaska the percentage of foreclosures started in a given quarter were about 0.5%, compared the national average of 1%. The total inventory of foreclosures in process is only 1.1% 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.
Delinquent loans are more than 30 days past due, but not yet in foreclosure. Alaska is third best out of 50 states, behind North Dakota and South Dakota, in the overall level of delinquent loans. Alaska’s delinquency rate is 4.3%, while the U.S. average is 8.2% for all loan types.
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 3.6% while the national average is 14.5%. The survey covers just under 95,000 mortgages in Alaska. Approximately 7,200 or 8% were considered subprime, compared to 10% nationally. Alaska’s subprime delinquency rate is 10% compared to the national average of 22.2%.
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