Released: February 02, 2010

Rising FHA default rate foreshadows a crush of foreclosures

Source: Dina ElBoghdady and Dan Keating, Washington Post (Free Registration)

The share of borrowers who are falling seriously behind on loans backed by the Federal Housing Administration jumped by more than a third in the past year, foreshadowing a crush of foreclosures that could further buffet an agency vital to the housing market’s recovery.

About 9.1 percent of FHA borrowers had missed at least three payments as of December, up from 6.5 percent a year ago, the agency’s figures show.

Read Full Article: Rising FHA default rate foreshadows a crush of foreclosures