Year-Over-Year Non-Agency Jumbo Prime Foreclosure Starts Skyrocket

Non-agency jumbo prime foreclosure starts have increased almost 125% since January 2008, according to Lender Processing Services Inc.'s (LPS) February 2009 Mortgage Monitor report.

The jump was the largest among product types studied in the report, which is an overview of industry performance indicators ending in January. Deterioration rates for foreclosure were highest for jumbo prime and option adjustable-rate mortgage products, the report says. Although these two produces represent only 6% of outstanding mortgages based on loan count, they represent 17% based on unpaid principal balance, LPS says.

The monthly report is based on data from the company's repository of loan-level residential mortgage data and performance information, including more than 34 million active loans across the credit spectrum.

Foreclosure starts have continued to increase across major product types over the past several months, despite moratoria and mitigation. The report also shows that 25% of mortgage loans that were modified in the fourth quarter of 2008 were delinquent by the end of January 2009. That represents a 10% increase from December.



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