However, according to a presentation given by James Lockhart , the Director of the Federal Housing Finance Agency (FHFA), to the Association of Government Accountants on the 19th of February, third quarter 2008 national default information shows that while private label (private investor) backed mortgages are only 16% of all outstanding mortgages, they account for 62% of all seriously delinquent mortgages.
The FHFA report defines seriously delinquent as a payment that is at least 90-days past due.
In addition, Freddie and Fannie account for 56% of all outstanding mortgages, but only 19% of seriously delinquent mortgages.
PLUS, mortgages held in a bank’s portfolio account for 16% of all outstanding mortgages, and only 6% of seriously delinquent mortgages.
Many of the bank portfolio loans – especially first-time buyer programs and low- to moderate-buyer programs, ALSO required home buyer education - - especially in Minnesota. Is this a fair inference? Feel free to discuss in the comments.
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In addition to educated buyers, as you mentioned in the post, one other reason for the huge difference may be the fact that Fannie/Freddie and the private portfolio mortgages are primarily owner-occupied residences. A HUGE number of foreclosures are occuring on investment (non-owner occupied) houses. Loans to speculators/investors would primarily fall in the "Private Label" category.
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