The total dollar amount of outstanding subprime loans was $714 billion at June 30, a 45% decline from the peak in 2007, according to figures compiled by National Mortgage News and the Quarterly Data Report.
National Mortgage News, a Collections & Credit Risk sister publication, also found that subprime delinquencies held steady at about 33%, with foreclosures rising slightly to 13%. However, the delinquency figures are based on a sample of less than 10 subprime servicers. Many companies the newspaper surveyed will no longer disclose their A-minus to D delinquency rates publicly.
Currently, 20 companies are actively servicing subprime loans.
Subprime loans have been reduced in part through foreclosure and the refinancing of these risky products into more conventional mortgages.
National Mortgage News calculated that based on the peak subprime debt figure of $1.3 trillion, at least $429 billion of A-minus to D loans are in some form of arrears or foreclosure.