TEXT-S&P: fewer U.S. home mortgage mortgage delinquencies in Q4

(The following statement was released by the rating agency)

Feb 22 - The percentage of U.S. residential mortgage delinquencies and new foreclosures started in the fourth quarter of 2011 declined modestly from the previous quarter, as well as from the levels a year ago, according to a recent report published by Standard & Poor's Ratings Services. "We believe decreasing delinquencies represent a positive trend for the underlying collateral performance of U.S. residential mortgage-backed securities and the housing market's recovery," primary research analyst Erkan Erturk said. "Combined with lower foreclosure starts, the declines suggest we could see a slow but gradual improvement in the foreclosure inventory in the upcoming quarters." Total delinquencies, including loans 30 days or more past due but excluding foreclosures and real estate owned homes, are currently at their lowest point in the last three years and have been gradually falling from their 10.1% peak in the first quarter of 2010. However, the overall percent of mortgages in foreclosure remained elevated but nearly flat from the third quarter. The still elevated foreclosures (which include approximately 1.9 million homes) and distressed home sales signal that home prices will remain under pressure in the upcoming months as those homes are liquidated. We published the full report, "U.S. Home Mortgage Delinquencies Fell, But Foreclosures Remained Flat In Fourth-Quarter 2011," on Feb. 17, 2012, on RatingsDirect, on the Global Credit Portal. The report is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to research_request@standardandpoors.com. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided. (New York Ratings Team)