MORE FROM HANNITY'S ECONOMY

Note from the last article that Fredo is approaching Raygun's record for delinquent loans.

Home equity below 50% level
By Sandra Block, USA TODAY
Home equity for the average American has dropped below 50% for the first time since World War II, reflecting a widespread decline in home values and relatively loose mortgage practices during much of this decade.

The average homeowners' equity — the mortgage balance as a proportion of the home's market value — fell to 47.9% at the end of 2007, the Federal Reserve reported Thursday. The Fed also issued revisions to earlier reports indicating that, for the first time in record keeping dating back to 1945, home equity was below 50% for the last nine months of 2007.

Foreclosure rate hits record high
More than 2% of all mortgages in the U.S. were in the process at the end of the fourth quarter. Home equity levels decline.
By Maura Reynolds, Los Angeles Times Staff Writer
March 7, 2008

Nationwide, nearly 6% of all mortgages were delinquent at the end of the fourth quarter and just over 2% were in foreclosure, the Mortgage Bankers Assn. reported. ... The number of foreclosures was at the highest level since the association began keeping records in the 1970s.

Although the current crisis began with sub-prime loans -- mortgages made to borrowers with low incomes or poor credit -- the mortgage bankers survey showed delinquencies and foreclosures on the rise for prime loans as well.

The number of prime mortgages in arrears or foreclosure reached 4.51% nationally and 4.43% in California. The rates were higher for adjustable rate mortgages, with 8.68% either delinquent or in foreclosure nationally and 8.48% in California.

About 6% of U.S. mortgages delinquent, report reveals
BY GRETA GUEST • FREE PRESS BUSINESS WRITER • March 7, 2008

Nearly 6% of all mortgages were delinquent nationwide in the fourth quarter and foreclosure starts were at the highest levels ever, according to a report issued Thursday by the Mortgage Bankers Association.

The total national delinquency rate of 5.82% is the highest in the mortgage bankers survey since it reached 6.07% in 1985, said Doug Duncan, chief economist for the mortgage bankers.