The November Mortgage Monitor report released by Lender Processing Services Inc. (LPS) shows that the volume of loans moving to real estate-owned (REO) continued to drop as moratoria further delayed foreclosure sales. While the 90-plus delinquency category has steadily declined, the number of loans moving to seriously delinquent status beyond 90 days far outpaced the number of foreclosure starts. Nearly 2.2 million loans are 90 days or more delinquent but not yet in foreclosure.
Foreclosure inventories also continued to rise for the fifth straight month as delinquent accounts are referred for foreclosure, but the sale of foreclosure properties continued to decline. When compared to January 2008 levels, the foreclosure inventory of Jumbo Prime loans is nearly seven times higher; the inventory of Agency Prime loans is nearly six times higher; and the foreclosure inventory of Option ARM loans is approaching five times the inventory in January 2008.
The report also shows that one-third of loans that are 90 days or more delinquent have not made a payment in a year; however, the number of new problem loans declined nearly 5.4 percent from October, which is opposite of the seasonality trend that typically impacts new delinquencies this time of year. Self-cures for loans one to two months delinquent increased in November to a six-month high.
In the month of November, 261,153 loans were referred to foreclosure, which represents a 0.7 percent month-over-month decline. The total number of delinquent loans is nearly 2.1 times historical averages - and foreclosure inventory is currently at 7.7 times historical averages.
As reported in LPS' First Look release, other key results from LPS' latest Mortgage Monitor report include:
►Total U.S. loan delinquency rate: 9.02 percent
►Total U.S. foreclosure inventory rate: 4.08 percent
►Total U.S. non-current* loan rate: 13.10 percent
►States with most non-current* loans: Florida, Nevada, Mississippi, Georgia, New Jersey
►States with fewest non-current* loans: North Dakota, South Dakota, Alaska, Wyoming, Montana
*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state. Totals based on LPS Applied Analytics' loan-level database of mortgage assets and are extrapolated to represent the industry.
Ciick here to view the full November Mortgage Monitor report.
For more information, visit www.lpsvcs.com.
