Alaska continues to have some of the lowest levels of foreclosures and delinquent residential mortgage loans in the United States according to the Mortgage Bankers Association fourth quarter 2012 survey. Alaska ranked third best in the nation in both foreclosures and delinquencies of all loan types.
The total inventory of foreclosures in process is 1.1% in Alaska, while the country has a much larger lingering foreclosure inventory at 3.7% due to higher rates during the recession and longer resolution times. Alaska foreclosure rates remain unchanged year-over-year, while U.S. foreclosure rates have dropped from 4.4% one year ago.
Delinquent loans are more than 30 days past due, but not yet in foreclosure. Alaska is third best behind North Dakota and South Dakota in the overall level of delinquent loans. Alaska’s delinquency rate is 3.7%, while the U.S. average is 7.5% for all loan types. This is an improvement for Alaska from 4.3% one year ago. The U.S. delinquency rate has also come down from 8.2% last year.
Subprime lending to traditionally non-qualified borrowers was a large contributing factor to the national mortgage problems. The Mortgage Bankers Association survey covers 94,347 mortgages in Alaska. 6,670 or 7% were considered subprime, compared to 10% nationally. 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 as having the lowest level of foreclosures and delinquencies in this important category. Subprime foreclosures in Alaska are at 2.9% while the national average is 11.9%. Alaska’s subprime delinquency rate is 10% compared to the national average of 21.3%.
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