December 3, 2012 (Shirley Allen)
Mortgage delinquencies fell by 4.91 percent in October after spiking by 7.72 percent in September and are 7.19 percent below last year’s pace according to the latest “First Look” Mortgage Report released by Lender Processing Services (LPS).
The percentage of loans that were 30 days or more past due, but not yet in foreclosure, fell from 7.40 percent in September to 7.03 percent in October as nearly 200,000 less homeowner’s found themselves in trouble during the month.
The foreclosure inventory also continued to decrease in October to a total of 1.800 million properties, down from 1.940 million properties in September, a decline of 140,000 properties. The foreclosure inventory was 15.99 percent lower than a year ago.
The number of properties in the shadow inventory did however increase slightly, climbing from 1.530 million properties in September to 1.543 million properties in October, a gain of 13,000 properties.
In all, the total number of properties that were either delinquent or in some stage of foreclosure decreased from 5.640 million in September to 5.300 million in October.
The “First Look” report contains highlights of the company’s forthcoming Mortgage Monitor report which will provide a more in-depth review including an analysis of data supplemented by in-depth charts and graphs that reflect trend and point-in-time observations.
Early highlights of the report include:
Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 7.03% compared to 7.40% in September 2012
Month-over-month change in delinquency rate: -4.91% compared to 7.72% in September 2012
Year-over-year change in delinquency rate: -7.19% compared to 4.19% in September 2012
Total U.S foreclosure pre-sale inventory rate: 3.61% compared to 3.87% in September 2012
Month-over-month change in foreclosure presale inventory rate: -6.77% compared to -4.05% in September 2012
Year-over-year change in foreclosure presale inventory rate: -15.99% compared to -7.37% in September 2012
Number of properties that are 30 or more days past due, but not in foreclosure: (A) 3,500,000 compared to 3,700,000 in September 2012
Number of properties that are 90 or more days delinquent, but not in foreclosure: 1,543,000 compared to 1,530,000 in September 2012
Number of properties in foreclosure pre-sale inventory: (B) 1,800,000 compared to 1,940,000 in September 2012
Number of properties that are 30 or more days delinquent or in foreclosure: (A+B) 5,300,000 compared to 5,640,000 in September 2012
States with highest percentage of non-current* loans: FL, MS, NJ, NV, NY (FL, MS, NJ, NV, IL in September 2012)
States with the lowest percentage of non-current* loans: MT, AK, SD, AK, ND (MT, AK, SD, WY, ND in September 2012)
*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.
(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