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

National Mortgage Professional
Nov 29, 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.
Published
Nov 29, 2006
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