The Mortgage Monitor report released by Lender Processing Services Inc. (LPS), a provider of mortgage performance data and analytics, showed mixed results with the nation's home loan market. Modest improvements in the number of loans curing to current and reductions in total new delinquencies are still overshadowed by a large pool (7.39 million) of non-current and real estate-owned (REO) loans. The report is based on data as of March 2010 month-end.
Several of the nation's largest states by population, including Florida, Nevada, New Jersey, Arizona, California, Illinois, Indiana and Ohio showed foreclosure inventories at a higher percentage than the average national foreclosure rate of 3.27 percent. Overall, the number of non-current loans across the nation has declined over the past six months, but 16 states showed an increase in the number of non-current loans. Total delinquencies, excluding foreclosures, decreased 10.3 percent from February to March 2010, however, the total represents a year-over-year increase of 15.7 percent. Similarly, March's foreclosure rate stands at 3.27 percent, representing a month-over-month decrease of 1.2 percent but a year-over-year increase of 32.9 percent. The number of loans moving from seriously delinquent into foreclosure rose in March, after hitting historic lows in February.
The impact from the federal government's Home Affordable Modification Program (HAMP) is evident in the improved level of loan cure rates as trial modifications are converted to official loan modifications. Elevated levels of early-stage cures (loans 30- to 60-days delinquent) indicate a higher rate of self-cures.
Other key results from LPS' latest Mortgage Monitor report include:
Total U.S. loan delinquency rate
Total U.S. foreclosure inventory rate
Total U.S. non-current* loan rate
States with most non-current* loans
Florida, Nevada, Mississippi, Arizona, Georgia, California, Illinois, Rhode Island, New Jersey and Michigan
States with fewest non-current* loans
North Dakota, South Dakota, Alaska, Wyoming, Montana, Nebraska, Vermont, Colorado, Iowa and Minnesota
*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state. Note that totals based on LPS Applied Analytics' loan-level database of mortgage assets.
LPS manages the nation's leading repository of loan-level residential mortgage data and performance information from approximately 40 million loans across the spectrum of credit products. The company's research experts carefully analyze this data to produce dozens of charts and graphs that reflect trend and point-in-time observations for LPS' monthly Mortgage Monitor Report.
To review the full report, listen to a presentation of the report or access an executive summary, click here.
For more information, visit www.lpsvcs.com.