Tag Archives: Delinquency Rate

Fitch Ratings has reviewed all U.S. subprime mortgage securitizations rated by the agency and found little change in expected losses for the bond investors as default risk improved slightly. However, the agency says loss severities have increased due to longer foreclosure timelines and still-declining home prices. Fitch says the average time to liquidate a distressed loan has increased by roughly six months from a year ago and now exceeds 20 months. Timelines are expected to increase further in 2011 as foreclosures continue to face procedural challenges.

Lender Processing Services, Inc. (LPS) gave the media an advance look Monday at the company's February mortgage performance report to be released later this week. In what can be viewed as an anomaly of the current housing crisis, LPS' data show that both the national mortgage delinquency rate and the share of homes that are in the process of foreclosure drifted lower last month. Altogether, LPS says there are 6,856,000 properties in the United States with mortgages that are at least 30 days past due or in foreclosure.

The delinquency rate on loans included in commercial mortgage-backed securities (CMBS) conduit and fusion transactions increased 17 basis points in February to 9.18 percent, according to Moody's Investors Service. Moody's noted that while still rising, increases in CMBS delinquencies have been moderating since June 2010. During February loans totaling $4.1 billion became newly delinquent, while previously delinquent loans totaling $3.0 billion became current, worked out, or liquidated.

Americans are beginning to gain ground against the worst recession in recent history as more and more economic indicators point to recovery. A new study from the Federal Reserve says household net worth in the U.S. soared $2.1 trillion during the last three months of 2010. The figures are a good sign for the mortgage market as it struggles to get a handle on delinquency numbers in the millions, provided the increased net worth translates into fewer homeowners who are unable to meet their mortgage obligations.

Rhode Island may be the smallest state in the country, but its foreclosure rate is keeping pace with the big guys. According to a special report issued by HousingWorks RI, a nonprofit coalition of nearly 140 local organizations, through the fourth quarter of 2010 Rhode Island continued to rank highest in New England in both foreclosure starts and serious delinquencies. Roughly one in every 10 mortgaged homeowners in the state has been affected by the foreclosure crisis over the last two years.

Delinquencies on loans held in commercial mortgage-backed securities (CMBS) climbed to a new record high this past month, according to the latest index results from Fitch Ratings. But the company's analysts say the rising influx of new issuance bonds may help to stem future late-pay increases. The agency reports that late-pays rose 17 basis points to close out February at 8.76 percent. That surpasses the previous high-water mark reported by Fitch in September 2010 when the agency recorded a CMBS delinquency rate of 8.66 percent.

The national unemployment rate fell to 8.9 percent in February, as employers added 192,000 jobs to their payrolls, the Department of Labor reported Friday. The rate is down from 9.0 percent in January and 9.4 percent as recently as December. The Labor Department described the latest numbers as ""little changed,"" noting that 44 percent of the 13.7 million unemployed have been jobless for 27 weeks or more. However, the 192,000 jobs that were added in February represented the largest monthly net gain since mid-2010.

Data released by Lender Processing Services (LPS) Wednesday shows that while foreclosure starts decreased in the first month of 2011, they still outnumber foreclosure sales by almost three to one. According to the company's analysis, lenders initiated 230,000 foreclosure actions in January, down 11.4 percent from the previous month. Foreclosure sales totaled approximately 80,000 during the same month. At the same time, deterioration in the 90-plus days delinquent category increased for the first time since May 2010.

The housing crisis and the financial downturn that followed, without question, have profoundly altered the consumer lending landscape. According to the financial advisory firm Deloitte, one change that may be underappreciated is the rapid emergence of an important customer segment that could have powerful implications for lenders - the first-time defaulter. A survey conducted by the firm found that 11 percent of banking customers have experienced a negative credit event for the first time in their lives within the last two years.

After several months in which the nation's volume of non-current home loans declined, the contraction has come to an end. Lender Processing Services (LPS) says there were 6.92 million residential mortgages past due or in foreclosure as of the end of January. That's up from 6.87 million reported by the analytics firm for December. LPS provided the media with a sneak peek at its January month-end mortgage performance data, and the numbers show that both the delinquency rate and foreclosure inventory rate edged up last month.