Mortgage Delinquencies Rise Slightly in April, Down 10 Percent from Last Year

May 22, 2012 (Shirley Allen)

Mortgage delinquencies increased for the first time in nine months in April, rising by a modest 0.03 percentage points, but still remained over ten percent below where they were a year ago 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 7.09 percent in March to 7.12 percent in April, the first increase in the delinquency rate in nine months. The delinquency rate was 10.6 percent lower than what it was in April 2011.

The foreclosure inventory decreased in April to a total of 2.048 million properties, down from 2.060 million properties in March, a decline of 12,000 properties. The foreclosure inventory was virtually unchanged compared to a year ago.

The number of properties in the shadow inventory also declined, falling from 1.643 million properties in March to 1.595 million properties in April, a decrease of 48,000 properties.

The total number of properties that were either delinquent or in foreclosure declined from 5.591 million in March to 5.570 million in April, a decline of 0.4 percent.

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): 7.12% compared to 7.09% in March 2012

Month-over-month change in delinquency rate: 0.4% compared to -6.3% in March 2012

Year-over-year change in delinquency rate: -10.6% compared to -8.8% in March 2011

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

Month-over-month change in foreclosure presale inventory rate: 0.0% compared to –0.1% in March 2012

Year-over-year change in foreclosure presale inventory rate: 0.0% compared to -1.6% in March 2011

Number of properties that are 30 or more days past due, but not in foreclosure: (A) 3,522,000 compared to 3,531,000 in March 2012

Number of properties that are 90 or more days delinquent, but not in foreclosure: 1,595,000 compared to 1,643,000 in March 2012

Number of properties in foreclosure pre-sale inventory: (B) 2,048,000 compared to 2,060,000 in March 2012

Number of properties that are 30 or more days delinquent or in foreclosure: (A+B) 5,570,000 compared to 5,591,000 in March 2012

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

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