Skip to main content

Study Finds QRM Could Have Impacted 50 Percent of All Mortgages Since 2005

NationalMortgageProfessional.com
Aug 04, 2011

The June Mortgage Monitor report released by Lender Processing Services Inc. (LPS) shows that, while still down 16.4 percent from the start of the year, foreclosure starts increased by more than 10 percent in June 2011. Delinquencies were also up, but incrementally, showing a 2.4 percent increase over May. As of the end of June, 4.1 million loans were either 90-plus days delinquent or in foreclosure, representing a 12.8 percent increase since June 2010. Foreclosure timelines continue their upward trajectory, with the average loan in foreclosure having been delinquent for a record 587 days. More than 40 percent of 90-plus day delinquencies have not made a payment in more than a year. For loans in foreclosure, 35 percent have been delinquent for more than two years. LPS also examined historical data to estimate the potential impact of the proposed Qualified Residential Mortgage (QRM) provision of the Dodd-Frank Act. The data shows that, since 2005, nearly half of all loans originated in the United States could have been ineligible under QRM. At the same time, LPS found that the potential impact of the Federal Housing Finance Agency (FHFA) high-cost conforming limit expiration would be minimal, accounting for only one percent of originations over the last three years. Looking at the differences between judicial and non-judicial foreclosure states, the LPS data shows that the foreclosure pipeline ratio—that is, the number of loans either 90-plus days delinquent or in foreclosure divided by the six-month average of foreclosure sales—is more than three times as high for judicial foreclosure states. Additionally, the slowdown associated with foreclosure moratoria has been almost exclusively felt in judicial states. Other key results from LPS' latest Mortgage Monitor report include: ►Total U.S. loan delinquency rate: 8.15 percent ►Month-over-month change in delinquency rate: 2.4 percent ►Total U.S foreclosure pre-sale inventory rate: 4.12 percent ►Month-over-month change in foreclosure pre-sale inventory rate: 0.2 percent ►States with highest percentage of non-current* loans: FL, NV, MS, NJ, IL ►States with the lowest percentage of non-current* loans: MT, WY, AK, SD, ND *Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.
Published
Aug 04, 2011
Home Builder Confidence Dips Due To Inflation And Supply Chain Concerns

Home builder confidence in the market for newly built, single-family homes fell by one point to 83 in January 2022, according to the National Association of Home Builders and Wells Fargo's Housing Market Index report.

Construction
Jan 18, 2022
Milo Releases First-Ever U.S. Crypto Mortgage

This will make it easier for crypto investors to purchase U.S. real estate.

Industry News
Jan 18, 2022
Total Expert Hires John Emerick As CFO

Emerick served as CFO for two rapidly growing software-as-a-service companies: Code42 and CyberGrants.

Industry News
Jan 18, 2022
Home Partners Of America Launches Choice Lease Program

Home Partners of America launched its Choice Lease program aimed at addressing the affordable housing crisis and mortgage access challenges, that are faced by low-to-moderate-income families and underrepresented communities.

Industry News
Jan 17, 2022
KBRA Assigns Preliminary Ratings To OBX 2022-NQM1 Trust

Kroll Bond Rating Agency assigned preliminary ratings to six classes of mortgage pass-through notes from OBX 2022-NQM1 Trust, a $556.7 million non-prime RMBS transaction.

Non-QM
Jan 17, 2022
Zillow: Black Mortgage Applicants Denied 84% More Often Than White

Zillow recently analyzed data from the Home Mortgage Disclosure Act and found that Black mortgage applicants are denied a mortgage 84% more often than white applicants.

Analysis and Data
Jan 13, 2022