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Definition: National Delinquency Survey (NDS)
Mortgage Bankers Association comes out with a quarterly publication which has information related to the health of the overall mortgage market. This helps in understanding the number (or percentage) of late dues that can hamper the entire sector. It also monitors the amount of loans and mortgages closed or the ones that are in the pipeline for closure.
The NDS isn’t a compulsory exercise. It is a voluntary survey of money lenders like banks, loan associations, subservicer and insurance companies that also lend money. The coverage is done state wise and the details about participation of the firms are generally not disclosed. Different states may have different levels of participation. State X may have 85% of firms taking part while state Y may have only 55% participation.
The loan types are broken into various types. A loan could be prime, subprime etc. the loan is also categorized depending upon the rate regime. It could be fixed or floating rate of interest.
There are many reasons that one can attribute to for failure of timely payments. Primary reason among all is the loss of income. Death, permanent disability and divorces are also some of the prominent reasons for failure in timely payments of dues.
It should be remembered that NDS isn’t a scientific sample. It merely relies on the coverage of the broader mortgage market as noted by the representatives.
Foreclosure and bankruptcy isn’t the same idea. In foreclosure, the title of the property gets transferred to the money lender from the borrower as the property is the collateral offered.