The Mortgage Bankers Association's National Delinquency Survey shows that the delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 7.58 percent of all outstanding loans at the end of the fourth quarter.

Data shows the delinquency rate decreased 41 basis points from the third quarter and were down 67 points from this time of the previous year. The non-seasonally adjusted delinquency rate dropped to 8.15 percent, five basis points down from the last quarter.

According to the MBA, the percentage of loans on which foreclosure actions were started during the third quarter was just under 1 percent, a decrease of nine basis points from the previous quarter and 28 basis points from the year before.

Additionally, the percentage of loans in the foreclosure process at the end of the fourth quarter was also down, reaching 4.38 percent. The drop was five points less than in the third quarter and 26 points less than the fourth quarter of 2010.

The survey shows that the serious delinquency rate, those that are 90 or more days past due or in the foreclosure process, also fell, reaching 7.73 percent. The drop indicated a loss of 16 basis points from the last quarter and was a notably high 107 basis points less than a year ago.

The MBA says the combined percentage of loans in foreclosure or those that are at least one payment past due was 12.63 percent on a non-seasonally adjusted basis, a 10 basis point decrease from the third quarter and 87 basis points lower than the fourth quarter of 2010.

"Mortgage performance continued to improve in the fourth quarter, reflecting the improvement we saw in the job market and broader economy," said Jay Brinkmann, chief economist and senior vice president for research and education of the MBA. "The total delinquency rate and foreclosure starts rate decreased and are back down to levels from three years ago."

The number of delinquent loans that originated before 2008 are related to lenient mortgage loan requirements. Other economic factors including employment will also help repair the current housing market.

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