Business Journal: Default Rates Up
Homeowners are defaulting on subprime loans in the Sacramento area in growing numbers.
Friday, April 6, 2007
It’s a #1 rating that no one wants … but it belongs to the three-county Sacramento region. It’s showing that the default rate on subprime loans reached 14 percent at the end of last year … up from 3 and a half percent the year before … and that is the sharpest deterioration of any metro area in the nation. The new report, from First American Loan Performance, looked at subprime mortgages at least 60 days in arrears. Some metro areas have much higher default rates … in Detroit, it’s one in 4 … but Sacramento’s distinction is the community that had the sharpest swing, to the negative, in just a year.