Tag Archives: Delinquency Rate

The commercial mortgage research firm Trepp LLC says the delinquency rate for loans held in U.S. commercial mortgage-backed securities (CMBS) edged higher in March, but the agency says it's seeing clear signs that the market is starting to heal. Trepp reports that the percentage of CMBS loans 30-plus days delinquent, in foreclosure, or REO rose 3 basis points last month to 9.42 percent. It's the highest delinquency rate ever recorded by the company, but the smallest month-over-month increase in more than two years.

According to a new poll from the market research firm Harris Interactive, 22 percent of people with mortgages have difficulty making their monthly payments. The poll also reveals that 21 percent think they are underwater and owe more on the loan than their home is worth. Compared to the results of last year's poll, those struggling to pay their mortgage has declined by 7 percent, but the company says the improvement is deceptive since it likely reflects the fact that borrowers previously experiencing trouble have already lost their homes.

The percentage of single-family mortgage loans counted as seriously delinquent has dropped back for both Fannie Mae and Freddie Mac. According to Fannie Mae's latest monthly status report, the GSE's seriously delinquent rate has declined to 4.45 percent. Freddie Mac's most recent report shows its seriously delinquent rate to have fallen to 3.78 percent. Both companies have posted steady declines for three consecutive months, and they've recently announced changes to their servicing guidelines that could impact the way delinquent loans are handled.

The nation's largest mortgage servicers foreclosed on 95,067 homes during the fourth quarter of 2010, a 49 percent drop from the number of completed foreclosures during the previous quarter, according to a new report from two regulatory agencies. Newly initiated foreclosures also decreased but by a much smaller ratio of 8 percent. Because new foreclosures outpaced completed foreclosures, the inventory of foreclosures in process increased to 1,290,253, representing 3.9 percent of all serviced loans among the largest national firms.

A study by the credit bureau TransUnion shows that when choosing which bills they can afford to pay, consumers are more likely to pay their credit card obligations and fall behind on their mortgage payments. TransUnion says this trend has continued for the past three years, and while the number of consumers current on credit cards but delinquent on their mortgage has declined slightly, it is more than 70 percent higher than it was at the beginning of the ""Great Recession.""

Wolters Kluwer Financial Services on Tuesday announced the launch of Pre-Foreclosure Manager, a hosted solution for U.S. mortgage servicers to create, mail, track, and manage borrower default notices. The nation's servicers face a rising number of loans entering default in addition to increasing regulatory pressures. Wolters Kluwer Financial Services says its new technology offers a solution to address large spikes in foreclosure volumes with limited in-house resources and reduce the risk of non-compliance.

New data released by Lender Processing Services (LPS) Monday clearly illustrates that foreclosure timelines are growing longer and longer. The company reports that the average loan in foreclosure right now has been delinquent for a record 537 days, and 30 percent of loans in foreclosure have not made a payment in over two years. As of the end of February, LPS says foreclosure inventory levels stood at more than 30 times monthly foreclosure sales volume.

The number of new filings for foreclosures in the state of New York fell in 2010, but the percentage of properties in the foreclosure process is growing, according to a new report from New York State Comptroller Thomas P. DiNapoli. He says the sharp drop in new filings can be attributed in part to a temporary suspension of foreclosure related activity, not an improvement in the market.

The mortgage default risk index from University Financial Associates (UFA) registered a reading of 141 for the first quarter of 2011. The index's baseline of 100 correlates to the default risk of the 1990s. Translation -- investors and lenders should expect defaults on loans originated in Q1 to be 41 percent higher than that of loans originated in the 1990s. UFA says the most important story behind the numbers is that the default risk index has found a plateau, and if inflation rates continue to rise, default risks will improve more rapidly.

Radar Logic's latest RPX Composite, which tracks home prices in 25 major metros, declined to $179.50 per square foot in January, its lowest level since 2007. The company says the rapid decline suggests weak market fundamentals, including a high supply of homes coupled with high rates of mortgage defaults. The report also notes that sales of foreclosed homes by financial institutions, or ""motivated sales,"" made up 35 percent of all home sales as of January 20, the second highest share of motivated sales that Radar Logic has observed.