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The delinquency rate on mortgages declined by 20 percent year-over-year in Q2 down to 2 point 72 percent, according to TransUnion's Industry Insight Report for Q2 released Monday. The delinquency rate is less than half of what it was three years ago, when it was reported at 5.39 percent for Q2 2012. Joe Mellman, head of TransUnion's mortgage group, said quote, This is largely due to foreclosures and other seriously delinquent accounts continuing to work their way through the foreclosure process, as well as a reflection of the high credit quality of recent originations. Close quote
All 10 of the largest metro areas and 48 states reported double-digit year-over-year declines in the percentage of seriously delinquent mortgages in Q2. The metro areas that experienced the largest declines were Miami with 40 percent and Los Angeles with 29 percent. The average mortgage balance increased slightly both over the quarter and over the year. For Q2 2015, the average mortgage balance was $188,237.
Some lawmakers are skeptical that Too Big to Fail has ended seven years after the crisis despite claims from some high-level government officials such as Treasury Secretary Jacob Lew that it has ended. Bipartisan legislation is pending in both the Senate and the House of Representatives that would protect taxpayers by limiting the Fed's emergency lending powers, and Subcommittees in both the House and the Senate held hearings in late July to discuss the issue.
