About 12.07 percent of mortgage loans were delinquent or in the foreclosure process during the quarter, according to a survey by the industry group. That is the highest level ever recorded by the survey, which has been conducted since 1972. It is up from about 8 percent during the first quarter of 2008.

"The increase in the foreclosure number is sobering but not unexpected," said Jay Brinkmann, the group's chief economist. (These #'s would temper the effect of alcohol consumption!)

Lenders who held off while the Obama administration unveiled its foreclosure prevention program earlier this year are now working their way through a backlog of troubled loans, economists said. And the recession has become a major factor in the foreclosure crisis. For example, for the first time, prime loans, which are traditionally considered safer, represented the largest share of foreclosures during the first quarter, according to the data.

Of the loans in foreclosure during the first quarter, 49.8 percent were prime loans and 43.2 percent were subprime.

Obama's FPP (forclosure prevention program) not exactly offering the relief expected. (for banks, they couldn't care less about homeowners!)

Or are these #'s just bait for further taxpayer debauchery?

Their "house of cards" continues to tumble simultaneously!

Now a precipitous fall in the bond market (expected) would ignite a further spike in mortgage default (the consequence of interest rate hikes) and decreaase US bank liquidity, which due to their own chicanery is very fragile to say the least! (Bond prices drop as interest rates surge! An expected result as the demand for cash (credit) rises!)

Gold still is the "lead horse" on this merry-go-round!

RUF