Delinquencies, foreclosure starts drop: MBA

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CHICAGO (MarketWatch) -- The percentage of mortgages that are delinquent fell in the fourth quarter of 2011, and fewer loans entered the foreclosure process, reflecting improvement seen in the economy, the Mortgage Bankers Association reported on Thursday. "The total delinquency rate and foreclosure starts rate decreased and are back down to levels from three years ago," said Jay Brinkmann, MBA's chief economist and senior vice president for research and education. A seasonally adjusted 7.58% of all mortgages outstanding were delinquent, or at least one payment past due, in the fourth quarter, down from 7.99% in the third quarter and down from 8.25% in the fourth quarter of 2010, according to the MBA's quarterly delinquency survey. Meanwhile, foreclosure actions were started on 0.99% of mortgage loans, down from 1.08% in the third quarter and 1.27% a year ago.