As job losses continue to wreak havoc on California’s housing market, more prime and subprime borrowers who took out either fixed or adjustable rate loans are struggling to retain possession of their properties. Here’s a peek at some of the revealing numbers compiled by the Mortgage Bankers Association.

California has the twelfth most mortgage delinquencies of all states in the nation, and has the fourth most foreclosure starts. The delinquency rate on mortgage loans in California was 10.51% of all active loans in the third quarter of 2009. However, this number is deceptively low as this figure does not include loans which are already in foreclosure.

The delinquency rate in California for prime borrowers of fixed rates loans is 5.7% and 15.76% for adjustable rate loans. The delinquency rate in California for subprime borrowers of fixed rates loans is 23.61% and 27.85% for adjustable rate loans.

first tuesday take: The Notice of Delinquency epidemic  will persist so long as job loss continues to undermine recovery. After all, prime borrowers are just as susceptible to job loss and negative equity as subprime borrowers. Borrowers, both prime and subprime, require employment providing an income to pay their mortgages. Without an income, the only option is to fall behind – default.

Re: “Friday catch-up: A look at California and U.S. loan delinquencies,” from the Sacramento Bee.

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Tagged as: foreclosure, income, mortgage, notice of delinquency, TIC