Tag Archives: Delinquency Rate

Default rates on both first and second mortgages declined in July, according to the S&P/Experian Consumer Credit Default Indices. Second mortgage defaults decreased from 1.4 percent in June to 1.25 percent. The first mortgage default rate for the month of July was 1.93 percent, down from 2.02 percent the previous month. Both measurements also declined from a year earlier. S&P says July's data support the downward trend the company has observed over the past two years.

The delinquency rate on loans in U.S. commercial mortgage-backed securities (CMBS) rose 22 basis points in July to hit 9.24 percent, according to Moody's. The increase follows two months in which delinquencies edged lower, and marks the seventh consecutive month the rate has come in above the 9 percent mark. The balance of loan delinquencies increased by $835 million last month. Moody's says CMBS delinquencies are likely to remain in the high single-digit range for the near term.

The delinquency rate of first-lien residential mortgages increased to 8.44 percent of all loans outstanding as of the end of the second quarter of 2011, the Mortgage Bankers Association (MBA) reported Monday. Although the rate is down 141 basis points from a year earlier, it rose 12 basis points when compared to the first quarter of 2011. The biggest increase came from loans in the earliest stage of delinquency - just one installment, or 30 days past due. Analysts called this the ""most worrying"" aspect of the report.

Lenders continue to battle the headwinds of high unemployment, a stalled economic recovery, and a backlog of bad loans from the heyday of the housing boom - all playing into a marketplace stressed with high levels of delinquencies and complex resolutions. But the underpinnings of a new age of creditworthy, financially savvy borrowers are beginning to take shape. The counseling agency CredAbility says its Consumer Distress Index has improved for three consecutive quarters.

Lender Processing Services (LPS) issued a report Tuesday which puts the number of mortgages that are delinquent or in foreclosure at 6,538,000. The company's assessment is based on mortgage performance statistics through the end of July, derived from its loan-level database of nearly 40 million mortgages. The grand total of past-due mortgages has risen by nearly 190,000 over the past two months. In June, LPS' tally of loans at least 30 days delinquent or in foreclosure was 6,452,000. In May it was 6,350,000.

After losses last month, Fitch Solutions reports a recovery among subprime credit-default swaps (CDS) in July. Subprime CDS prices increased 1 percent overall for the month. The largest increases in prices were among 2006 and 2007 vintages, which rose 6.1 percent and 10 percent, respectively. The rate of 90-day plus delinquencies reached a new low for the year - declining 1.4 percent to 10.8 percent. The share of subprime loans with balance modifications has increased by 120 percent over the last year.

The Federal Reserve found a small increase in consumers' willingness to borrow and banks' willingness to lend, but a decline in loan balances, according to the second-quarter household debt report issued Monday by the central bank's New York arm. Mortgage debt and home equity lines of credit each decreased by about $20 billion during the second quarter of 2011. This represents a 0.2 percent drop for mortgage balances and a 3 percent drop for home equity loans.

TransUnion's mortgage performance barometer has recorded its largest drop in delinquencies since the end of the recession two years ago. The credit bureau says mortgage delinquencies improved 5.98 percent during the second quarter, with the rate of homeowners 60 or more days past due declining to 5.82 percent. TransUnion predicts delinquencies will continue to decline throughout the year, thanks to conservative lending policies that cater to consumers with higher credit scores.

Mortgage delinquencies remain elevated while other aspects of the consumer credit picture, such as bankcard performance, are improving, according to a new report from Experian. The credit bureau says instances of 60-day mortgage delinquencies have risen by 25 percent from 2007, prior to the recession, while 60-day credit card delinquencies have decreased 20 percent since that time. Portland shows the greatest increase in missed mortgage payments, almost double since 2007.

Freddie Mac said Monday that it logged a $2.1 billion net loss for the second quarter. The company has requested $1.5 billion in taxpayer funding from Treasury, bringing the total amount of its capital draws while in conservatorship to $66.2 billion. Freddie's latest financials represent a slide from the previous quarter, when it posted a $676 million profit and needed no money from Treasury. The GSE acquired 24,799 REO properties through foreclosure in the second quarter but sold 29,355, shrinking its inventory of repossessed homes.