People often ask how many subprime mortgages are out there, how big the problem is, and why is it such a big deal. Today we shall look a a relatively small state by size. Connecticut had 71,000 subprime mortgages totaling $15 billion, with about 8 percent or 5,680 totaling $1.2 billion that were seriously delinquent as of March 31, 2007. New figures show the state has 77,000 active subprime mortgages totaling about $17 billion. Of those, about 15 percent or 11,550 loans totaling $2.5 billion were seriously delinquent and headed for foreclosure as of Dec. 31. These figures are just from one state.
Multiply that by the other states in the nation. Granted some states are bigger and some are less populated. By early 2008 the nation also awakened to the problem of rising gasoline and food prices. Oil has skyrocketed, and the impact on Connecticut this winter will come from the high cost of home heating oil. We used Connecticut because news reports seem to concentrate on Ohio, California, Florida, and Arizona. The Connecticut figures are indicative of a problem that is nto under control and will not go away for a while.