Mortgage Delinquencies Rise for Second Consecutive Month

June 21, 2012 (Shirley Allen)

Mortgage delinquencies increased for the second consecutive month in May, rising 1.1 percent from April but still almost ten 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 from 7.12 percent in April to 7.20 percent in May, the second consecutive increase in the delinquency rate following nine months of declines. The delinquency rate was still 9.6 percent lower than what it was in May 2011.

The foreclosure inventory decreased in May to a total of 2.027 million properties, down from 2.048 million properties in April, a decline of 21,000 properties. The foreclosure inventory was 1.0 percent lower than a year ago..

The number of properties in the shadow inventory also declined, falling from 1.595 million properties in April to 1.575 million properties in May, a decrease of 20,000 properties.

The total number of properties that were either delinquent or in foreclosure declined from 5.570 million in April to 5.569 million in May.

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 to 7.12% in April 2012

Month-over-month change in delinquency rate: 1.1% compared to 0.4% in April 2012

Year-over-year change in delinquency rate: -9.6% compared to -10.6% in April 2011

Total U.S foreclosure pre-sale inventory rate: 4.12% compared to 4.14% in April 2012

Month-over-month change in foreclosure presale inventory rate: -0.5% compared to 0.0% in April 2012

Year-over-year change in foreclosure presale inventory rate: 0.2% compared to 0.0% in April 2011

Number of properties that are 30 or more days past due, but not in foreclosure: (A) 3,542,000 compared to 3,522,000 in April 2012

Number of properties that are 90 or more days delinquent, but not in foreclosure: 1,575,000 compared to 1,595,000 in April 2012

Number of properties in foreclosure pre-sale inventory: (B) 2,027,000 compared to 2,048,000 in April 2012

Number of properties that are 30 or more days delinquent or in foreclosure: (A+B) 5,569,000 compared to 5,570,000 in April 2012

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

States with the lowest percentage of non-current* loans: MT, AK, SD, WY, ND (MT, AK, SD, WY, ND in April 2012)

*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