Compensating loan processors: When time and a half means more than you think

Compensating loan processors: When time and a half means more than you think

November 28, 2006

National foreclosures decrease 16 percent in Q2MortgagePress.comNational foreclosure statistics
RealtyTrac, an online marketplace for foreclosure properties,
has released its "2006 Q2 U.S. Foreclosure Market Report," which
shows that 272,109 properties nationwide entered some stage of
foreclosure in the second quarter of 2006, a 16 percent decrease
from the previous quarter but still a 25 percent year-over-year
increase from the second quarter of 2005.
The nation's second-quarter foreclosure rate of one new
foreclosure for every 425 U.S. households was higher than in any
quarter of last year.
"Foreclosure filings in the second quarter of 2006 present a
classic 'good news, bad news' scenario. A 25 percent increase from
the second quarter of 2005 obviously isn't a positive trend. But,
despite some of the sensational reports we've seen lately,
foreclosure filings have actually slowed down since peaking in
February," said James J. Saccacio, chief executive officer of
RealtyTrac. "While the nation's foreclosure rate has certainly
shifted into a higher gear since last year, low unemployment and
home price appreciation in most housing markets have held
foreclosures in check. We forecasted a slowdown in foreclosure
rates when we released our last quarterly report, and we expect
that if the summer months deliver their typically high number of
homebuyers, the demand for housing created by these buyers should
help keep foreclosure rates from rising too rapidly."
Colorado's second-quarter foreclosure rate of one new
foreclosure filing for every 158 households ranked as the nation's
highest, leapfrogging past Georgia's foreclosure rate, which was
highest in the first quarter. Colorado reported 11,599 properties
entering some stage of foreclosure during the second quarter, a 13
percent decrease from the previous quarter but a 48 percent
year-over-year increase from the second quarter of 2005.
Foreclosure activity in Georgia slowed substantially in June,
and the state's second-quarter foreclosure rate—one new
foreclosure filing for every 202 households—dropped to second
highest among the states. The state reported 15,309 properties
entering some stage of foreclosure during the quarter, a 37 percent
decrease from the previous quarter but still a 42 percent increase
from the second quarter of 2005.
Texas reported 39,690 properties entering some stage of
foreclosure during the second quarter, the most of any state and a
foreclosure rate of one new foreclosure for every 203
households—the nation's third highest state foreclosure rate.
The state's foreclosure activity decreased one percent from the
previous quarter but was up 22 percent from the second quarter of
2005. Other states with second-quarter foreclosure rates ranking
among the nation's 10 highest included Utah, Indiana, Nevada,
Illinois, Michigan, Florida and Ohio.
After Texas, California and Florida documented the second and
third most foreclosure filings of any state despite declining
foreclosure activity in the second quarter, respectively.
California reported 27,606 properties entering some stage of
foreclosure, a seven percent decrease from the previous quarter but
more than twice the number reported in the second quarter of
2005.
Florida reported 25,853 properties entering some stage of
foreclosure, a 13 percent decrease from the previous quarter and a
16 percent year-over-year decrease.
With 18,690 properties entering some stage of foreclosure,
Illinois reported the fourth highest number of new foreclosure
filings in the second quarter. The state's foreclosure activity
increased 37 percent from the previous quarter and 57 percent from
the second quarter of 2005.
"One of the key factors to watch for over the next quarter is
the extent to which some of the higher-risk, adjustable-rate
mortgages go into default. Hundreds of millions of dollars of these
types of loans are due to reset during the rest of 2006, and if
they default at a higher rate than more traditional mortgage loans,
it could significantly accelerate foreclosure filings," said
Saccacio.
For more information, visit www.realtytrac.com.

Compliance

Subscribe to the nmp Daily

Subscribe to the nmp Daily