While securitized pools of home loans certainly make up the bulk of the distressed residential real estate in the US, portfolio loans are having their fair share of trouble as well. Residential REO, nonaccrual loans, and loans reported as 90 days late all increased. Residential portfolio loan problems stand at nearly $160B.
Loans that became more than 90 days late increased by 13.6% to $64.8B by the end of Q2. Loans reported as nonaccrual, meaning they’re deemed to have little chance of being repaid according to terms, increased 6.8% to $83.5B. Residential REO, bank owned homes, increased only 1.14%.
While most residential loans are securitized and traded as investment instruments portfolio loans are held at the banks where the loan was made. BankProspector tracks whole loans for four real estate categories and gives distressed real estate professionals access to the real estate records of more than 8000 lenders nation wide.