December 28 2010 (Jeff Alan)
Lender Processing Services (LPD) has released it November Mortgage Monitor report and the news wasn’t good. Foreclosure inventories continued to rise for the fifth straight month as delinquent accounts are referred for foreclosure, but the sale of foreclosure properties continued to decline.
The report revealed that that the volume of loans moving to REO continued to drop as moratoria further delayed foreclosure sales. While the 90+ delinquency category has steadily declined, the number of loans moving to seriously delinquent status beyond 90 days far outpaced the number of foreclosure starts. Nearly 2.2 million loans are 90 days or more delinquent but not yet in foreclosure.
Compared to January 2008 levels, the foreclosure inventory of Jumbo Prime loans is nearly seven times higher, the inventory of Agency Prime loans is nearly six times higher, and the foreclosure inventory of Option ARM loans is approaching five times higher.
For the month of November, 261,153 loans were referred to foreclosure, a 0.7% month-over-month decline. The total number of delinquent loans is nearly 2.1 times historical averages – and foreclosure inventory is currently at 7.7 times historical averages.
The report also shows that one-third of loans that are 90 days or more delinquent have not made a payment in a year; however, the number of new problem loans declined nearly 5.4 percent from October, which is opposite of the seasonality trend that typically impacts new delinquencies this time of year. Self-cures for loans one to two months delinquent increased in November to a six-month high.
Other highlights of the report include:
Total U.S. loan delinquency rate: 9.02 percent
Total U.S. foreclosure inventory rate: 4.08 percent
Total U.S. combined foreclosure and delinquency loan rate: 13.10 percent
States with highest foreclosure and delinquency rates: Florida, Nevada, Mississippi, Georgia, New Jersey
States with lowest foreclosure and delinquency rates: North Dakota, South Dakota, Alaska, Wyoming, Montana
Analysts expect 2010 to be a record year for foreclosures despite the “robo-signing” mishap and many are predicting that 2011 will see more foreclosures than 2010 as a continuing stagnant economy, high unemployment, and declining home values will continue to weigh on the housing industry.
Tags: housing industry, foreclosures, jumbo loans, delinquent loans, home values, mortgage loans