Market Conditions
Loan Delinquencies and Jobs Lost to Real Estate Slowdown
By

DELINQUENT LOANS IN NEVADA

  The number of home loans in default or foreclosure during the second quarter of the past two years in Nevada has risen significantly, based on the Mortgage Bankers Association's tracking of more than 500,000 home loans in the state:

                                                                   2007                      2006

All loans past due                                       4.41%                   2.80%

Loans 30 days past due                            2.53%                    1.88%

Loans 60 days past due                            0.92%                    0.50% 

Loans 90 or more days past                     0.96%                     0.41%

Loans in foreclosure                                 1.57%                     0.45%

  Delinquencies are significantly higher among subprime borrowers, who often have troubled credit and get only higher-interest loans, than they are among the prime borrowers who can command the lowest interest rates.  Subprime loans make up 19.6 percent of the Nevada home loans tracked by the Mortgage Banking Association, compared with 19.2 percent a year ago.

                                                               2007                      2006

Prime loans past due                              2.35%                    1.41%

Subprime loans past due                      11.63%                     6.87%

Prime loans 30 days past due               1.53%                      1.05%

Subprime loans 30 days past due         5.93%                      4.36%

Prime loans 60 days past due               0.45%                      0.22%

Subprime loans 60 days past due         2.63%                      1.37%

Prime loans 90 days past due              0.37%                      0.14%

Sub prime loans 90 days past due       3.07%                      1.14%

Prime loans in foreclosure                   0.65%                       0.18%

Subprime loans in foreclosure             5.29%                        1.41%

JOBS LOST TO THE REAL ESTATE BUST

  Trouble in the housing market has lead to higher unemployment statewide in several fields related to residential real estate:

Jobs Lost in 1st Quarter:

                                                        2007          2006         % Change

Mortgage Banking                            2,718        3,206        -15.2%

Loan Brokers                                   1,195        1,398         -14.5%

Appraisers                                          323          366          -11.7%

Others (escrow, title)                        166          129             28%

Residential construction                 10,981    12,747         -13.9%

Source: Las Vegas Review Journal