Posted by 101livescan on 11/13/12 7:40am
Msg #443144
Mortgage Delinquencies up in September, highest since 08
LPS: Unexpectedly Large Increase in Mortgage Delinquency Rate in September
press release
11/8/2012
The September Mortgage Monitor report released by Lender Processing Services looked at the significant month-over-month increase in the nation’s delinquency rates – up 7.7 percent from August, and representing the largest monthly increase since 2008. While September has historically been marked by seasonal rises in delinquencies, this was still a marked upturn. However, according to LPS Applied Analytics Senior Vice President Herb Blecher, it is important to view the month’s data in its proper context.
“September’s increase in the delinquency rate was indeed significant, but the overall trend is still one of improvement,” Blecher said. “Despite the monthly jump, delinquencies are down 30 percent from their January 2010 peak, and our analysis revealed some interesting factors related to the spike. Of course, one month’s data does not indicate a trend. We will be monitoring these factors over the coming months to see how the situation develops.”
Blecher continued, “September 2012 was notable in its short duration of business days and virtually all transactional or operational metrics we observed declined in volume for the month; foreclosure starts, foreclosure sales, delinquent cures and loan prepayments all dropped from their August levels. It is important to note that we also saw the percentage of re-defaulting modifications contributing to the delinquency rate actually declined from the month prior.”
Newly available origination data also provided additional insight into the increase seen in August’s prepayment rates. After allowing a month for loan data to board, originations in August were found to be up 13.2 percent month-over-month and 42.1 percent year-over-year, reaching their highest point since 2009. The data shows that high loan-to-value HARP originations made up nearly a quarter of August originations.
As reported in LPS' First Look release, other key results from LPS' latest Mortgage Monitor report include:
​Total U.S. loan delinquency rate: ​7.40%
​Month-over-month change in delinquency rate: ​7.72%
​Total U.S. foreclosure pre-sale inventory rate: ​3.87%
​Month-over-month change in foreclosure pre-sale inventory rate: ​-4.05 %
​States with highest percentage of non-current* loans: ​FL, MS, NJ, NV, LA
​States with the lowest percentage of non-current* loans: ​MT, AK, SD, WY, ND
*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.
Totals are extrapolated based on LPS Applied Analytics' loan-level database of mortgage assets.
|
Reply by MikeC/TX on 11/13/12 6:47pm
Msg #443268
I think these numbers are probably regional
but you can probably expect to see a HUGE spike in those numbers on the east coast in the coming months. There are more than 40,000 homes that are no longer inhabitable on Long Island alone, and in some cases the house no longer exists (interesting question -how do you foreclose on a house when only the foundation is left?). NJ is just as bad if not worse. These people will probably not be focused on making a mortgage payment...
|
