Home / News / Foreclosure / Residential Mortgage Delinquency Rate Surpasses 10%: LPS
Print This Post Print This Post

Residential Mortgage Delinquency Rate Surpasses 10%: LPS

Home loan delinquency rates in the United States have now surpassed 10 percent, ""Lender Processing Services"":http://www.lpsvcs.com (LPS) reported this week.

[IMAGE]

When you factor in homes already in the foreclosure process, the total rate of noncurrent mortgages sits at 13.3 percent, according to the data in the Florida-based company's national loan-level database.

This rate indicates that more than 7.2 million mortgage loans are now behind on payments, LPS explained, with another one million properties already taken back by banks and in REO status.

LPS' ""January 2010 Mortgage Monitor"":http://www.lpsvcs.com/NEWSROOM/INDUSTRYDATA/Pages/default.aspx report, shows that within the population of loans that were current at the end of 2008, the percent of ""new"" serious delinquencies is 4.64

[COLUMN_BREAK]

percent â€" higher than any other year analyzed. Of loans that were current as of December 31, 2008, by December 2009 there were 2.3 million new loans that were considered seriously delinquent.

Seemingly less-risky, prime mortgages continue to loom large as the industry's big, pink elephant. Prime loans, including agency, non-agency, and jumbo, have experienced deterioration at a worse pace than subprime, Federal Housing Administration (FHA) insured mortgages, and all loans as a whole, LPS said. The company's analysis shows that within the prime loans category, those with unpaid principal balances between $417,000 and $600,000 have performed the worst.

The Mortgage Monitor report also indicates that 2009 vintage loans are performing better than loans from any of the prior five years and have been steadily improving as pools of loans grow larger. This improvement is attributed to more restrictive underwriting guidelines, but that also means ""liquidity is still not available where it is needed most,"" LPS said.

The company's analysis shows that states with most noncurrent loans are: Florida, Nevada, Mississippi, Arizona, Georgia, California, Indiana, Michigan, Illinois, and Ohio.

Those with the fewest include: North Dakota, South Dakota, Alaska, Wyoming, Montana, Nebraska, Vermont, Colorado, Oregon, and Washington.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.
x

Check Also

Castle Law Defendants Awarded $1.9M in Legal Fees

Discussing his clients’ victory, Larry Pozner, the lead defense attorney in the case, said, “How dare the state tell a law firm what quality it must hire or what sacrifices it should make to please the state. The clients were satisfied with the services they were receiving.”

GET YOUR DAILY DOSE OF DS NEWS

Featuring daily updates on foreclosure, REO, and the secondary market, DS News has the timely and relevant content you need to stay at the top of your game. Get each day’s most important default servicing news and market information delivered directly to your inbox, complimentary, when you subscribe.