Tag Archives: Delinquency

The Urban Institute September chart book was recently released, outlining refinances, serious delinquencies, and the government sponsored enterprises delinquency rates, amongst various other statistics related to the industry.

Delinquency rates in both early and late stages continue to decline, but how long is this trend expected to last? While all good things must come to an end, when it comes to mortgage delinquencies, soon isn’t on the radar.

So far, 2017 is looking up‒‒or, rather, down‒‒when it comes to foreclosures and distressed properties. But will downward trends continue?

On Monday, a unanimous Supreme Court decision could have vast implications for the mortgage and loan industry, particularly the secondary market, unless the Fair Debt Collection Practices Act is amended by Congress. The petitioners brought their case in front of the Supreme Court in an appeal of the 4th Circuit Court ruling in favor of the respondent. Justice Neil Gorsuch delivered his first opinion since his conferral to the Court.

Non-current inventory is at an 11-year low, falling below historical norms for the fourth consecutive month. The states with the highest percentage of non-current loans were largely in the South, including Mississippi, Louisiana, Alabama, New Jersey, and West Virginia. States with the lowest share were in the Midwest and Western U.S., including Idaho, Montana, Minnesota, North Dakota, and Colorado.

According to month-end data from March, the national delinquency rate has fallen to its lowest point in 11 years, hitting 3.62 percent. The number of non-current properties and the total inventory of loans under foreclosure, both fell to historic lows as well. Prepay speeds increased—a typical indicator of increasing refi activity.

According to a report from the Federal Housing Finance Agency, total Refinance volume has dropped as mortgage rates have risen. In February 2017, borrowers completed 4,198 refinances through HARP, and since HARP’s inception in 2009, the program has made 3,456,422 refinances. HARP represented three percent of total refinance volume, and six percent of loans refinanced through HARP had a loan-to-value ratio greater than 125 percent.

CoreLogic released its monthly Loan Performance Insights Report for January 2017, which analyzes rates of delinquency and foreclosure. In January 2017, 5.3 percent of mortgages were delinquent by 30 days or more, a 1.1 percent percentage point decline in the overall delinquency rate year-over-year. Overall, delinquency rates saw steady drops year-over-year.

Fannie Mae recently released its Monthly Summary for February 2017. Fannie Mae’s gross mortgage portfolio decreased for at a compound annualized rate of 16.9 percent for the month, while the GSEs Conventional Single Family Delinquency Rate stayed much the same month-over-month.

According to a recently released report by the Federal Housing Finance Agency (FHFA), foreclosures from Fannie Mae and Freddie Mac since the dawn of conservatorship reached 3.8 million as of Q4 2016. Overall however, serious delinquencies are down, along with short sales and REOs. FHFA also found that that the types of loan modifications offered are being influenced by the increase in home prices over the last couple of years.