Tag Archives: Delinquency Rate

The delinquency rate on U.S. commercial real estate loans saw its biggest drop in more than a year in October, according to Trepp, LLC. The analytics provider released its October 2012 U.S. CMBS (commercial mortgage-backed securities) Delinquency Report, revealing that the delinquency rate for commercial real estate loans in CMBS fell 30 basis points to 9.69 percent. The drop was the biggest one recorded in 14 months and marks the third straight month in which overall delinquency has improved.

After aggressively pursuing opportunities to grow, Ocwen Financial Corporation (Ocwen) reported an increase earnings in the third quarter of 2012. The mortgage servicer reported a net income of $51.4 million in Q3 2012, a sharp increase from the same quarter a year ago when net income was a reported $20.2 million. Revenue soared even higher in Q3, spiking 90 percent from last year to $232.7 million.

If Hurricane Sandy has any impact on the performance of residential mortgage-backed securities (RMBS), it will probably be one that is short-term, according to Fitch Ratings. The global rating agency says a ""modest and temporary increase in mortgage delinquency could occur"" after assessing the potential impact of the storm that has devastated areas in the Mid-Atlantic and Northeast coast.

Foreclosure inventory continued to diminish in September, but the delinquency rate saw a sudden month-over-month surge, according to the ""first look"" mortgage report from Lender Processing Servicers (LPS), which has a loan-level database covering about 70 percent of the market. The delinquency rate, which stood at 7.40 percent in September, hiked up 7.72 percent from August, but is still down by 4.19 percent from a year ago.

While Barack Obama and Mitt Romney may have been ""frustratingly light on detail"" so far with regards to housing, an analysis by Capital Economics reveals the two candidates' policies may have more in common than they care to admit. In a Housing Market Update released by the company, property economist Paul Diggle writes that, based on the information Capital Economics has pieced together, ""it looks like anyone expecting either candidates' housing plan to make a dramatic difference to the course of the housing recovery will be disappointed.""

When a home is sold through a foreclosure sale, at times the debt on the mortgage is not fully recovered through the sale. The remaining amount is the deficiency, and this amount is passed on to the mortgage owner to absorb or to try and collect from the borrower. The FHFA's Office of Inspector General (OIG) revealed in a report Wednesday that Fannie Mae and Freddie Mac have a recovery rate of only 0.22 percent when pursuing deficiencies, leaving room for much improvement.

There are a range of simulation games. Games that replicate what its like to be in a war zone and games that let you build your own city. To help banks tackle the issue of mortgage delinquencies, BankersLab announced the launch of CollectionLab, a simulation game that allows banks to test strategies in a virtual environment as they attempt to optimize delinquent collections.

The default rate for first mortgages now stands at a post-recession low, and the default rate for second mortgages is at the lowest level in its more than 8-year history, according to data from the S&P/Experian Consumer Credit Default Indices. The first mortgage default rate fell to 1.36 percent in September, down from 1.40 percent in August and 1.99 percent in September 2011. The second mortgage default rate bottomed to 0.64 percent, down from 0.72 percent in August 2012 and 1.32 percent a year ago.

August data from HOPE NOW revealed mortgage servicers gave an estimated 75,968 homeowners permanent loan modifications during the month. In July, total loan modifications was higher at 82,679. HOPE NOW also reported the industry has seen 5.75 million loan modifications since 2007. Of those modifications, about 4.68 million were proprietary loan modifications, while more than 1 million were from HAMP.

Radian Guaranty Inc. wrote $3.54 billion in new mortgage insurance in September, the company reported Wednesday. The mortgage insurer started off with 94,823 delinquent loans in September and ended with more loans, 94,831, in delinquency.