1 in 7 mortgages in foreclosure or delinquent Q1 2010 and Tim Geithner feels better about the U.S. recovery

Mortgage Bankers Association
WASHINGTON, D.C. (May 19, 2010) — The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 10.06 percent of all loans outstanding as of the end of the first quarter of 2010, an increase of 59 basis points from the fourth quarter of 2009, and up 94 basis points from one year ago, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey. The non-seasonally adjusted delinquency rate decreased 106 basis points from 10.44 percent in the fourth quarter of 2009 to 9.38 percent this quarter.

The percentage of loans on which foreclosure actions were started during the first quarter was 1.23 percent, up three basis points from last quarter but down 14 basis points from one year ago.

The delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure. The percentage of loans in the foreclosure process at the end of the first quarter was 4.63 percent, an increase of five basis points from the fourth quarter of 2009 and 78 basis points from one year ago. This represents another record high.

The combined percentage of loans in foreclosure or at least one payment past due was 14.01 percent on a non-seasonally adjusted basis, a decline from 15.02 percent last quarter.

The serious delinquency rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 9.54 percent, a decrease of 13 basis points from last quarter, but an increase of 230 basis points from the first quarter of last year.
Link to MBA Press Release

The following are comments from Tim Geithner during his interview with Erin Burnett on CNBC 5/19/10:

Geithner: Again, I would say generally-- again, if you look what's happening across the American economy, you are really seeing more signs of confidence among consumers. Incomes are rising more rapidly. You're seeing jobs created again. And that's helping put the broader financial security of Americans on a more stable foundation.

Erin Burnett: All right, so we'll do the U.S. economy. So, how do you feel about the U.S. economy right now?

Geithner: I'm feeling better about it. You know, just look at the example here. You're-- you heard them say today that-- unemployment rate's coming down in Seattle, in Washington, because they're exporting more. You know, trains are coming back across the country with containers full-- 'cause their exports are growing. And I think-- you know, you're seeing more confidence across the country. Businesses really across the country. Not just high tech, and manufacturing, all feel more confident. Have more confidence. And you see we're creating more jobs-- job growth is picking up-- in encouraging ways.
Link to a CNBC hyped interview with Tim "everything is coming up roses" Geithner

Grandpa is a bit perplexed on Geithner's view of economic data and has come to the conclusion that maybe he is simply hanging with the wrong crowd...