Mortgage Delinquency Rate Increases 4.7 Percent in Last Two Months

August 17, 2011 (Shirley Allen)

Mortgage delinquency rates increased by 2.4 percent for the second consecutive month in July while foreclosure inventories declined according to the latest “First Look” Mortgage Report released by Lender Processing Services (LPS), which is derived from its loan-level database of nearly 40 million loans.

The total number of loans that are 30 days or more past due, but not yet in foreclosure, climbed from 8.15 percent in June to 8.34 percent in July, a gain of 2.4, however, compared to July of 2010, the delinquency rate continued to be significantly less, with a year-over-year decline of 10.4 percent.

It was the second consecutive month that the mortgage delinquency rate has shown an increase adding an additional 195,000 delinquent mortgages since the beginning of June, an increase of 4.7 percent.

The number of properties in foreclosure decreased 0.4 percent from 2,167,000 in June to 2,156,000 in July.

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): 8.34% compared to 8.15% in June 2011

Month-over-month change in delinquency rate: 2.4% compared to 2.4% in June 2011

Year-over-year change in delinquency rate: -10.4% compared to -14.7% in June 2011

Total U.S foreclosure pre-sale inventory rate: 4.11% compared to 4.12% in June 2011

Month-over-month change in foreclosure presale inventory rate: -0.4% compared to 0.2% in June 2011

Year-over-year change in foreclosure presale inventory rate: 9.7% compared to 12.8% in June 2011

Number of properties that are 30 or more days past due, but not in foreclosure: (A) 4,382,000 compared to 4,285,000 in June 2011

Number of properties that are 90 or more days delinquent, but not in foreclosure: 1,899,000 compared to 1,906,000 in June 2011

Number of properties in foreclosure pre-sale inventory: (B) 2,156,000 compared to 2,167,000 in June 2011

Number of properties that are 30 or more days delinquent or in foreclosure: (A+B) 6,538,000 compared to 6,452,000 in June 2011

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

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