The May Mortgage Monitor report released by Lender Processing Services, which is based in Jacksonville, found that the national delinquency rate marked its largest year-to-date drop since 2002. Delinquencies are down more than 15 percent since December 2012, coming in at 6.08 percent for the month.
“Though they are still approximately 1.4 times what they were, on average, during the 1995 to 2005 period, delinquencies have come down significantly from their January 2010 peak,” says LPS Applied Analytics Senior Vice President Herb Blecher. “In large part, this is due to the continuing decline in new problem loans – as fewer problem loans are coming into the system, the existing inventories are working their way through the pipeline.
New problem loan rates are now at just 0.73 percent, which is right about on par with the annual averages during 2005 and 2006, and extremely close to the 0.55 percent average for the 2000-2004 period preceding.
“As we’ve noted before,” Blecher continued, “negative equity appears to still be one of the strongest drivers of new problem loans, and – primarily buoyed by home price increases nationwide – that situation also continues to improve.” The number of ‘underwater’ loans declined to just 7.3 million loans as of the end of the first quarter of 2013 – less than 15 percent of all currently active loans and a nearly 50 percent year-over-year decline.”
However, recent volatility in mortgage loan interest rates is not yet reflected in the data.
Other key results from LPS’ latest Mortgage Monitor report:
• Total U.S. loan delinquency rate: 6.08 percent
• Month-over-month change in delinquency rate: -2.11 percent
• Total U.S. foreclosure presale inventory rate: 3.05 percent
• Month-over-month change in foreclosure pre-sale inventory rate: -3.91 percent
• States with highest percentage of non-current* loans: Florida, New Jersey, Mississippi, Nevada and New York.
• States with the lowest percentage of non-current loans: Montana, Arkansas, Wyoming, South Dakota and North Dakota.
© 2013 Florida Realtors®
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