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Mortgage Delinquency Rate Sees Largest Drop Since 2006: TransUnion

New data from ""TransUnion"":http://www.transunion.com/ shows the national mortgage loan delinquency rate in Q3 2010 declined by the highest amount since the last quarter of 2006.

Based on the credit reporting agency's analysis, the delinquency rate for Q3 was 6.44 percent, down from Q2's rate of 6.67 percent.

A representative from TransUnion said the significant decline is an encouraging sign for a struggling industry, and attributes the decline to the stabilization in housing prices and record low interest rates for mortgage loans.

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The national mortgage loan delinquency rate is the ratio of borrowers 60 or more days past due.

""This decline in mortgage delinquency rates, in tandem with a stabilization in housing prices in many areas of the country and record low interest rates for mortgage loans, are all positive signs that this industry is moving in the right direction, coming out of one of the worst recessions in recent memory,"" said FJ Guarrera, vice president in TransUnion's financial services business unit.

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Guarrera continued, ""in addition, TransUnion is seeing positive movement and some traction in the industry in terms of real estate inquiries.""

Also included in the data released by the Chicago, Illinois-based company were reports that delinquency rates continued to be highest in Nevada and Florida, with rates of 15.12 percent and 14.64 percent, respectively.

The company also reported that later-stage mortgage delinquency had also declined. This year's Q3 average represents a 1.51 percent decrease from last year's Q3 results.

Late stage delinquency measures borrowers 90, 120, or more days past due.

The area with the highest average mortgage debt per borrower was the District of Columbia, at $368, 255. The lowest average mortgage debt per borrower was West Virginia at $100, 263. Both of these areas retained their status as highest and lowest from last quarter.

TransUnion's Real Estate Inquiry Index results are also included in the data released today by the company. The Real Estate Inquiry Index compares the number of credit reports requested of TransUnion for a real estate transaction. It is measured according to quarters. This past quarter, the nation measured in at 72.86. In Q2 the measurement was 68.43.

A value greater or less than 100 indicates either positive or negative activity for a particular quarter. South Dakota and North Dakota both scored more than 100, with South Dakota ranking at 154.28 and North Dakota coming in at 102.77.

Guarrera noted TransUnion expects the 60-day delinquency rate to continue to drift downward.

About Author: Joy Leopold

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