Since topping out in early 2010, the aggregate amount of severely delinquent mortgages has fallen by more than half. The improvement has been primarily concentrated in non-agency loans. Outstanding distressed loans are expected to return to pre-crisis levels within two years. As of May, $450 billion in residential first mortgages were at least 90 days past due or in foreclosure. The level of distressed loans has subsided substantially from the peak of $700 billion reached in January 2010. First mortgages originated between 2005 and 2007 accounted for 70 percent of the May total.
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