Tag Archives: Delinquency Rate

New data released by Lender Processing Services (LPS) shows mortgage delinquencies at the end of November 2011 were nearly 25 percent below their January 2010 peak. LPS says over that period, the number of noncurrent mortgages was slashed by nearly a quarter simply because fewer borrowers were falling behind on their payments - a trend which dominated 2010 and the first quarter of 2011. Unfortunately, the company says that trend has come to an end.

The delinquency rate among commercial mortgage backed securities (CMBS) rose in eight of 12 months in 2011, according to a report released Wednesday by Trepp. Most recently, the rate rose seven basis points to 9.58 percent for the month of December. That's up from 9.2 percent one year ago. Trepp views this as the first of a six to twelve month stretch where the rate could increase by 75 basis points in aggregate, as loans originated in 2007 begin reaching their balloon dates.

Serious delinquencies are on the decline, according to a recent report from Foreclosure-Response.org, a joint venture of the Local Initiatives Support Corporation, the Urban Institute, and the Center for Housing Policy. Among the 100 largest metropolitan areas, the study found serious delinquencies declined from 10.4 percent at their December 2009 peak to 9.3 percent by mid-2011. At the same time, foreclosure completions have steadied at 5.5 percent - but this leveling could prove problematic for recovery.

First-lien mortgage performance among large national banks' servicing portfolios is stabilizing, with 88 percent current over the third quarter of this year, according to the Office of the Comptroller of the Currency (OCC). Delinquencies - both early stage and serious delinquencies - remained unchanged, with 3 percent of loans 30 days to 59 days delinquent and 4.9 percent 60 or more days delinquent. However, new foreclosures rose 21.1 percent. The OCC says nearly half of the loans modified since 2008 have since redefaulted.

Lender Processing Services (LPS) has released new data detailing mortgage performance at November month-end. The most troubling statistic shows a nearly 3 percent month-over-month increase in the number of loans 30 or more days past due but not yet in foreclosure. LPS says 8.15 percent of the nation's mortgages fell into this category as of the end of November. That's up from 7.93 percent at the end of October and is the first time in four months the company has reported a rise in the national delinquency rate.

November marked the fourth straight month that Fitch Ratings has recorded a decline in the delinquency rate for loans held in U.S. commercial-backed mortgage securities (CMBS). CMBS late-pays fell by 15 basis points to 8.41 percent, as new delinquencies totaling $1.8 billion were offset by $2.2 billion of resolutions. Behind the positive numbers, though, Fitch says the performance of CMBS collateralized by office properties remain an area of concern, with more than half of all new delinquencies stemming from office loans.

There's been much debate over the root causes of the housing meltdown that catapulted the nation into the worst financial crisis in 80 years. A new report from the Federal Reserve focuses on the sharp run-up and subsequent collapse in housing prices during the 2000s. It concludes that real estate investors who used mortgage credit to purchase multiple properties played a larger role in fueling the housing bubble than previously recognized, pushing prices up during the boom and then defaulting in large numbers when prices began to head south.

Lenders and investors should expect defaults on mortgage loans currently being originated to be 31 percent higher than for loans originated in the 1990s, according to a new report from University Financial Associates (UFA). As a point of comparison, UFA's index for the worst vintages of this cycle (2006-2008) carried a default risk of more than 125 percent above the 1990s baseline. UFA says with consumer balance sheets improving and mortgage rates at record lows, the stage is set for a recovery in the housing market.

About 885,000 borrowers have received permanent loan modifications so far this year, according to October data from HOPE NOW. The voluntary alliance of mortgage industry participants announced last month that the industry had completed 5 million modifications since 2007. October saw almost 80,000 proprietary and HAMP modifications. Sixty-plus day delinquencies declined 6 percent between September and October, and foreclosure sales fell 5 percent. Foreclosure starts, however, rose by 7 percent.

Servicers for Fannie Mae and Freddie Mac have completed almost 2 million foreclosure prevention actions for the two companies since they went into conservatorship in 2008, according to the Federal Housing Finance Agency's (FHFA) third-quarter report released Wednesday. More than half of these actions have been loan modifications, and of the remainder, about 676,500 have kept homeowners in their homes. About 269,700 were short sales or deeds-in-lieu of foreclosure.