The Mortgage Bankers Association's National Delinquency Survey added to the negative news for the housing market.

The association reported the first quarter seasonally adjusted delinquency rate rose to 6.35%, up 53 basis points from 4Q07 and is up 151 basis points from a year ago. They said the seasonally adjusted rate was the highest recorded in the MBA survey since 1979.

By borrower type, delinquencies were up 47 basis points (113 basis points year-over-year) to 3.71% for prime loans over the quarter, and by 148 basis points (502 basis points year-over-year) to 18.79% for subprime.

Meanwhile, Federal Housing Administration (FHA) loan delinquencies declined 33 basis points (57 basis points year-over-year) to 12.72% and rose 73 basis points (73 basis points year-over-year) to 7.22% for Department of Veterans Affairs (VA) loans.

States with the highest overall delinquencies were Mississippi, Michigan, and Georgia, the MBA reported.

Serious delinquencies - loans 90+ day delinquent or in process of foreclosure - was a non-seasonally unadjusted 4.03%, up 47 basis points for the fourth quarter and 10 basis points from a year ago.

All loan types were higher over the quarter with the exception of FHA. Year-over-year, all loan types saw increases.

By type of loan, the ARM loan delinquency rate jumped 121 basis points for prime ARM loans to 5.43%, and surged 368 basis points to 24.11% for subprime ARMs. Year-over-year, prime and subprime ARM delinquencies have risen a notable 377 basis points and 1,98 basis points, respectively.

On the fixed side, prime was 12 basis points higher to 1.11% (45 basis points year-over-year) and 55 basis points (284 basis points year-over-year) to 8.73% subprime.

Regarding foreclosures, the inventory rate was 2.47%, up 43 basis points from fourth quarter and 119 basis points from Q1 2007. Foreclosure inventory rates for prime loans were 1.22%, 26 basis points higher from the last quarter; subprime loans increased 209 basis points to 10.74%; FHA up just six basis points to 2.40%; and VA, 12 basis points to 1.24%.

In terms of foreclosure starts, the rate was 16 basis points higher over the quarter to 99 basis points, and 83 basis points year-over-year. The highest foreclosure starts were in subprime loans, 62 basis points to 4.06%.

States with the highest foreclosure inventory were Florida, Nevada and Ohio. The top three states based on foreclosure starts were Nevada, Florida and California.

In its press release, the MBA noted that combined, California, Florida, Arizona and Nevada represent: 62% of all foreclosures started on prime ARM loans and 84% of the increase in prime ARM foreclosures; 49% of all subprime foreclosures started in the first quarter, and 93% of the increase in subprime ARM foreclosures; 29% of prime fixed-rate foreclosures and 60% of the increase in those foreclosures; and 25% of subprime fixed rate foreclosures and 53% of the increase in those foreclosures.

(c) 2008 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

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