Homes Entering Foreclosure At Record

The housing slump, Midwestern economic woes and resetting ARMs send late payments higher.

The delinquency rate for mortgage borrowers spiked higher in the second quarter and the number of homes entering the foreclosure process hit a record high, according to a report released Thursday.

Deliquencies hit 5.12 percent of all outstanding mortgages, up from 4.39 percent a year ago, the Mortgage Bankers Association (MBA) said in a quarterly survey.

Serious delinquencies, those 90 days or more late, jumped to 1.11 percent of all loans, from 0.98 percent in the first quarter.

The loans actually entering foreclosure proceedings stood at 0.65 percent, a rise from 0.58 percent in the first three months - and the highest rate in the MBA's 55-year history.

This disaster is the result of greedy mortgage brokers and banks which loaned money knowing damn well that the borrowers could not pay it. Where are the criminal charges against those that run these institutions?