New Hampshire Mortgage Troubles Mounting, But More Slowly Than Most

While delinquency rates on residential New Hampshire mortgages rose during the fourth quarter of 2006, they remained below the national average and were the third-lowest in New England.

Total mortgage delinquencies in New Hampshire increased by 48 basis points to 4.37 percent in fourth quarter 2006, up from 3.89 percent in the third quarter of 2006.

• Some 188,313 home loans were serviced in the Granite State during fourth quarter 2006, up 1.5 percent from the previous quarter.
• Of those, 158,167, or 84 percent, were prime loans while 23,358, or 12 percent, were subprime mortgages.
• FHA loan and VA loan transactions made up the remaining 4 percent.

Despite a jump in New Hampshire mortgage delinquencies, the state remains below the national rate of 4.95 percent rate and behind the New England average of 4.46 percent.

While all four major mortgage types saw increases in delinquencies during the fourth quarter, increases in subprime loan delinquencies - those bearing high interest rates and given to borrowers with poor credit histories - were the most notable in New Hampshire and across the nation.

Mortgage delinquencies on bad credit home loans in New Hampshire increased by 156 basis points to 14.45 percent during the fourth quarter of 2006, up from 12.89 percent during the third quarter. Third-quarter numbers showed a 114-basis point jump.

Nationally, delinquencies on subprime (bad credit mortgage loans) increased by 77 basis points to 13.33 percent in the fourth quarter.

Nationally, foreclosures on subprime home loans during the fourth quarter were 3.74 percent, up 7 basis points from the previous quarter.

Delinquencies on prime rate loans were at 2.63 percent, up 34 basis points from the 2.29 percent reported for third quarter 2006. Foreclosures on the prime loans issued during the fourth quarter were 0.31 percent, up slightly from the 0.28 percent reported in third quarter.

Delinquencies on FHA loans increased by 83 basis points to 12.10 percent during the fourth quarter of 2006, up from 11.27 percent.

Delinquencies on VA loans were up 66 basis points to 6.97 percent, compared to 6.31 percent in the third quarter.

SOURCE: New Hampshire Business Review