GSE Foreclosure Starts Jump Nearly 60 Percent in January

March 13, 2012 (Shirley Allen)

Foreclosure starts jumped in January with the bulk of the activity originating from the two Government Sponsored Enterprises (GSE), Freddie Mac and Fannie Mae, according to the Mortgage Monitor Report released by Lender Processing Services (LPS).

The New Year started with a surge in both foreclosure starts and sales. Foreclosure starts increased by 28 percent in January while foreclosure starts jumped 29 percent. The bulk of the foreclosure starts originated from the GSEs which together saw a nearly 60 percent jump in foreclosure starts.

And those who had been struggling to make their mortgage payments struggled a little bit more after the first of the year as 47 percent of all foreclosure starts in January were repeat foreclosures, an all-time high.

The total number of loans that were 30 days or more past due, but not yet in foreclosure, fell from 8.15 percent in December to 7.97 percent in January. The delinquency rate was 10.5 percent lower than what it was in January 2011.

The foreclosure inventory increased 1.1 percent in January to a total of 2.084 million properties, up from 2.066 million properties in December, an increase of 22,000 properties. The foreclosure inventory was still 0.1 percent lower than a year ago.

Foreclosure inventories in states that used the judicial foreclosure system were two and half times higher than non-judicial states. On average, the foreclosure rate was 6.52 percent in judicial states compared to 2.46 percent in non-judicial states.

The number of properties in the shadow inventory declined, falling from 1.792 million properties in December to 1.772 million properties in January, a decrease of 20,000 properties.

Earlier highlights from LPS’s “First Look” report include:

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 7.97% compared to 8.15% in December 2011

Month-over-month change in delinquency rate: -2.2% compared to 0.0% in December 2011

Year-over-year change in delinquency rate: -10.5% compared to -7.7% in December 2011

Total U.S foreclosure pre-sale inventory rate: 4.11% compared to 4.15% in December 2011

Month-over-month change in foreclosure presale inventory rate: 1.1% compared to -1.3% in December 2011

Year-over-year change in foreclosure presale inventory rate: -0.1% compared to -1.0% in December 2011

Number of properties that are 30 or more days past due, but not in foreclosure: (A) 3,998,000 compared to 4,101,000 in December 2011

Number of properties that are 90 or more days delinquent, but not in foreclosure: 1,772,000 compared to 1,792,000 in December 2011

Number of properties in foreclosure pre-sale inventory: (B) 2,084,000 compared to 2,066,000 in December 2011

Number of properties that are 30 or more days delinquent or in foreclosure: (A+B) 6,082,000 compared to 6,167,000 in December 2011

States with highest percentage of non-current* loans: FL, MS, NV, NJ, IL (FL, MS, NV, NJ, IL in December 2011)

States with the lowest percentage of non-current* loans: MT, AK, WY, SD, ND (MT, WY, SD, AK, ND in December 2011)

*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.

Notes:
(1) Totals are extrapolated based on LPS Applied Analytics’ loan-level database of mortgage assets.
(2) All whole numbers are rounded to the nearest thousand.

Tags: LPS, mortgage delinquency rate, foreclosure inventory, non-current loans

Source:
LPS