Click for a Sharper ImageAccording to data from JP Morgan Chase 60+ delinquency rates across all loan catagories continue to rise.
The latest statistics from March 31, 2009 show that mortgage delinquencies for Subprime loans reached ~40% in March, and Option ARM loans (sometimes called pick-a-payment) went north of 30%, and this group has the steepest rise in default rates. [You can count on the Option ARM loans to continue increase in defaults as the resets roll through during 2009 - 2011]
These segments were followed by Alt-A mortgages with almost 20% of loans being 60 days or more behind and Home Equity Lines of Credit (HELOC) hovering around 10%...
Another disturbing trend is the early uptick in Jumbo Prime loans that are past due.
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On the other side of the chart is the recovery values by loan type...
As you'd expect HELOC loans have the worst recovery values---this is because they are typically not the first lien on the property---But another disturbing trend is that the recovery rates across all types of loans has been on serious downward spiral.
Hat tip to: Dr. Housing Bubble for the chart
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