Bank of America & Citibank report rise in mortgage defaults
Dec 22, 2008 | Comments 0
According to data compiled by Citibank, Bank of America (NYSE:BAC), JPMorgan Chase (NYSE:JPM) and other large US financial institutions, the amount of home mortgage borrowers that are defaulting after their mortgage loans are modified are continuing to rise, it’s also noted that there is no sign of the rising defaults leveling off.
The data outlined that after 6 months almost 37 percent of mortgage loans modified in the first quarter of 2008 were 60 days or more in the red.
John Dugan, head of Office of the Comptroller of the Currency said in a statement that the trend of increasing delinquencies underscores the need to understand why these modifications have not been more sustainable.
The data that was released earlier in December was in preliminary form.
Source: Reuters
Filed Under: Mortgage News