The Federal Reserve Bank of New York released some troubling data Friday which revealed that one-third of U.S. subprime adjustable-rate mortgages were delinquent as of August.
The study also found that 12 percent of the 26,642 subprime ARMs sampled were more than 60 days delinquent, with a staggering seven percent of those types of loans in foreclosure proceedings.
The bank found that six percent of fixed-rate subprime loans were more than 60 days overdue and 2 percent were in foreclosure.
The study was based on a sample of one percent of securitized subprime and Alt- A loans in the U.S.
The bank also released data on 48,875 securitized subprime and Alt-A loans tied to New York City properties, finding that roughly 14 percent of subprime adjustable-rate mortgages were in foreclosure as of August, and another 10 percent were at least 60 days late.
Yesterday, real estate data company RealtyTrac announced that foreclosures in the third quarter nearly doubled from levels in the same period a year ago.