Tag Archives: Delinquency Rate

Distressed inventory is on the decline, but the number of months it will take to clear these distressed homes from the market is on the rise. According to the latest report from Morningstar Credit Ratings, distressed inventory among non-agency residential mortgage-backed securities dropped 20 percent to 891,000 properties as of September. However, Morningstar says it will take 49 months to work through this inventory given current market dynamics. That's 11 months longer than the assessment in 2012.

For the first time in more than four years, banks insured by the Federal Deposit Insurance Corporation (FDIC) reported an annual loss, according to the regulator's Quarterly Banking Profile released Tuesday. At $36 million, the net income of FDIC-insured banks in the third quarter is $1.5 million below earnings reported in the third quarter of last year.

The nation's foreclosure inventory has contracted for 18 consecutive months and is now at its lowest point since the end of 2008, totaling 1.28 million loans, or just 2.54 percent of today's active mortgages, according to Lender Processing Services. The company's latest report assessing the performance of mortgage assets through the end of October shows the industry's foreclosure inventory rate has plummeted 29.61 percent from last year.

It's no secret underwriting standards have tightened in recent years, and while many decry the heightened standards for making homeownership less accessible to some Americans, an economist with CoreLogic points out in a report released Wednesday that heightened standards are, without question, impacting delinquencies for the better, with 2013 vintage loans carrying a serious delinquency rate of just six basis points.

Collaboration between the private and public sectors has resulted in 8 million non-foreclosure solutions completed for at-risk families since 2007, according to HOPE NOW, a voluntary alliance of mortgage servicers, investors, mortgage insurers, and nonprofit housing counselors. Over the last six years, the mortgage industry has completed more than 6.71 million total permanent loan modifications, while short sales total approximately 1.39 million since December 2009.

Foreclosures edged up over the month of October in California with notices of default increasing 15.3 percent, notices of trustee sale rising 4.1 percent, and foreclosure sales up 3.9 percent, according to PropertyRadar. All three indicators, though, were down more than 45 percent from October 2012, with foreclosure sales hovering near record lows. However, a closer look at foreclosure sales reveals a decline in sales to third parties and an increase in REO sales.

Some 204,000 Americans found work in October, the Bureau of Labor Statistics reported Friday morning. Yet with the number of public employees counted as unemployed or temporarily laid off as a result of the federal government shutdown last month, the national unemployment rate rose to 7.3 percent, up from 7.2 percent in September. Job gains for both August and September were revised upward, adding a combined 60,000 more to the workforce.

Delinquency and foreclosure data reveals the housing market is heading back to pre-crisis norms, according to the Mortgage Bankers Association's latest National Delinquency Survey. The percentage of home loans in delinquency or foreclosure was 9.75 percent as of the third quarter, the lowest level in about five years, according to the trade group's report. Likewise, foreclosure starts, at just 0.6 percent, are approaching pre-crisis levels.

Fannie Mae released its September book of business, revealing further declines as new acquisitions came to their lowest level in more than a year. The GSE's book of business totaled $3.163 trillion as of the end of September, shrinking at a compound annual rate of 1.3 percent. The company's single-family serious delinquency rate slipped to 2.55 percent.

Mortgage delinquencies are on the decline, according to a report from Equifax. Home finance write-offs so far this year total $96.3 billion, down 22 percent from last year. The balance of mortgages in severe delinquency--those 90 or more days past due--is less than $300 million for the first time in five years, and Equifax's Amy Crews Cutts says current trends suggest we'll be at pre-recession levels of severe delinquencies by the end of 2014.