Today's subprime mortgage moment is brought to you by GMAC Financial Services, who yesterday announced they had to pay $1 billion to prop-up their subprime lending division.

A report released by the Mortgage Bankers Association showed the growing cracks in the credit of some American homeowners. As of the fourth quarter of 2006, the share of all subprime loans in arrears rose to 13.33%, the highest level since 2002. During the quarter, it said foreclosures were initiated on a seasonally adjusted 0.54% of all loans &8212; the highest rate since the trade group started reporting the numbers 37 years ago.

Many in the mortgage market had expected the rise in arrears, which was already apparent in lenders' results, and saw relatively low delinquency rates among borrowers with better credit as a positive. But some noted that problems among certain types of "prime" borrowers &8212; specifically those who had taken out loans with adjustable interest rates &8212; were an ominous sign.

The data "show that mortgage credit-quality problems go well beyond the subprime sector," wrote Jan Hatzius, chief U.S. economist at Goldman Sachs in New York, in a research note.

I think it's going to be a week or longer before everyone gets their hands around the issue. Right now you just have lots of news being pushed out, with very little analysis.

Anyone want to comment? Have you applied for a loan over the past several days or weeks and found you had more trouble getting approved?

More: Subprime Fears Spread, Triggering Calls for Reform - By Mark Whitehouse and Sarah Lueck, The Wall Street Journal