Utah mortgage delinquencies fell in first quarter of 2010

SALT LAKE CITY — The delinquency rate for mortgage loans on residential properties in Utah fell 0.61 percent in the first quarter of 2010 from the previous three-month period, according to the Mortgage Bankers Association, based in Washington, D.C.

The report released Wednesday showed the state had a delinquency rate of 8.03 percent, compared to the national average of 9.38 percent. The delinquency rate excludes loans in the process of foreclosure, a news release said.

The percentage of loans in Utah on which foreclosure proceedings were started during the quarter was unchanged from the prior quarter at 1.19 percent, while the percentage of loans in the foreclosure process at the end of the quarter increased 0.13 percentage point to 3.43 percent.

Among the 50 states and the District of Columbia, Utah ranked 30th in delinquencies and 14th in foreclosures started. Nevada ranked first in delinquencies with a rate of 14.03 percent, as well as first in foreclosure starts at a rate of 3.23 percent.

Utah has 28 percent nonprime borrowers (FHA and subprime) versus a national average of 22 percent, the report said.

Nationally, the delinquency rate for mortgage loans on one- to four-unit residential properties was 9.38 percent on a non-seasonally adjusted basis, down 1.06 percentage point from 10.44 percent in the fourth quarter of 2009. The seasonally adjusted delinquency rate on residential properties was 10.06 percent in the first quarter, up 0.59 percentage point from last quarter's seasonally adjusted rate.

The report noted that mortgage delinquency rates normally fall between the fourth quarter of one year and the first quarter of the next due to a variety of seasonal factors, including heating bills and Christmas holiday spending. Many borrowers are behind on their mortgage payments at the end of December but are current by the end of March, the report said.

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