Providing Capital, Building Communities, Creating Impact

July 1, 2010  •

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The year 2008 was a period of continued economic decline. The national unemployment rate rose from 5.0% in the fourth quarter of 2007 to 7.4% in the fourth quarter of 2008. The percentage of loans in the foreclosure process was 3.30%, 126 basis points higher than the end of fourth quarter 2007.2 The delinquency rate for loans on one-tofour-unit mortgages rose to a seasonally adjusted rate of 7.88%, up 206 basis points from fourth quarter 2007.3 The percentage of FDIC-insured institutions’ loans and leases 30 or more days past due was 4.94%, with the 90-day plus nonaccrual rate at its highest level since 1992. One out of every three FDIC-insured institutions reported a net loss in the fourth quarter.