Mortgage Performance Trends in the Southeast: Mixed Results for the Third Quarter
In the six states that, in whole or in part, make up the Sixth Federal Reserve District (Alabama, Florida, Georgia, Louisiana, Mississippi, and Tennessee), seriously delinquent first mortgages, which include those in foreclosure and 90-plus days delinquent, are down from 11.8 percent in September 2010 to 11.3 percent in September 2011.
That trend does not appear as promising when looking solely at foreclosure rates, which have seen a modest increase from September 2010 (7.1 percent) to September 2011 (7.5 percent). The foreclosure process reviews that began in late 2010 have had a lingering effect and have slowed foreclosure activity in many states, possibly leaving more properties lingering in the foreclosure category for a longer time and driving up overall rates.
Trends since September 2010
Each Sixth District state shared in the improved delinquency trend. In fact, compared to September 2010, every state improved in every category other than foreclosure. Alabama, Florida, Mississippi, and Tennessee, however, all have experienced increases in foreclosure rates since last year. The nation as a whole followed a similar pattern, with only foreclosure rates increasing since September 2010, from 3.5 to 3.7 percent.
Florida Driving Southeast Foreclosure Figures but Not Delinquencies
Mortgage delinquencies throughout the Southeast states are more similar. For example, 30-day delinquent loans represent 4.3 percent of mortgages in the other five states compared to 2.8 percent in Florida. Mississippi leads the District with 5.8 percent of mortgages 30 days delinquent in September 2011. Not surprisingly, it also leads the District in unemployment, which was 10.5 percent in November 2011.
By Kevin Mahoney, research assistant, Federal Reserve Bank of Atlanta's community and economic development department.