More Home Owners Can’t Pay Mortgages

Homeowners who are falling behind on their mortgage payments continue to outnumber those who are resolving their difficulties and staying in their homes, according to a report from the trade group, Mortgage Insurance Companies of America.

Some 67,967 homeowners with mortgage insurance fell at least 60 days behind on their mortgages, compared with 40,687 who got back on track, the mortgage insurance group reported. May is the 26th straight month that defaults outnumbered improvements.

Insurers are tightening standards on mortgages they insure to stem further losses. The new requirements contributed to a 48 percent drop in the number of mortgage insurance policies issued to new homeowners during May, the trade group says.

Source: Bloomberg, Erik Holm (06/30/2008