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Strategic Mortgage Delinquencies as High as 27%, JPMorgan Says

The number of borrowers choosing to fall behind on payments on U.S. home loans packaged into bonds without government backing has held steady over the past year, meaning the “strategic delinquencies” account for a larger share of new late payments, according to JPMorgan Chase & Co.

Strategic delinquencies, or mortgages that turn 60 days late after home-price drops wipe out the equity of homeowners who are remaining current on other debt, totaled between about 12,000 and 14,000 a month over the past year among the loans, JPMorgan analysts led by John Sim wrote in a Sept. 30 report.