Home/Mortgages/Mortgage Delinquencies Rise for a Third Consecutive Month

July 26, 2012 (Shirley Allen)

Mortgage delinquencies increased for the third consecutive month in June, rising 3.4 percent from May, but were still seven percent lower than last year 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, increased by 3.4 percent bringing the total number of loans delinquent in the U.S. to 7.14 percent in June, the third consecutive monthly increase in the delinquency rate following nine months of declines. The delinquency rate was still 7.3 percent lower than what it was in June 2011.

The foreclosure inventory decreased 2.0 percent in June to a total of 2.061 million properties. The foreclosure inventory was 1.0 percent lower than a year ago.

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): 7.20% compared

Month-over-month change in delinquency rate: 3.4%

Year-over-year change in delinquency rate: -7.3%

Total U.S foreclosure pre-sale inventory rate: 4.09%

Month-over-month change in foreclosure presale inventory rate: -2.0%

Year-over-year change in foreclosure presale inventory rate: -1.0%

Number of properties that are 30 or more days past due, but not in foreclosure: (A) 3,602,000

Number of properties that are 90 or more days delinquent, but not in foreclosure: 1,590,000

Number of properties in foreclosure pre-sale inventory: (B) 2,061,000

Number of properties that are 30 or more days delinquent or in foreclosure: (A+B) 5,663,000

States with highest percentage of non-current* loans: FL, MS, NV, NJ, IL (FL, MS, NJ, NV, IL in May 2012)

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