Skip to main content

TransUnion: Delinquency Rate Drops Nearly 14 Percent Nationwide in 2012

NationalMortgageProfessional.com
Feb 12, 2013

The national mortgage delinquency rate (the rate of borrowers 60 or more days past due) declined for the fourth consecutive quarter, dropping from 5.41 percent in Q3 2012 to 5.19 percent in Q4 2012. On a year-over-year basis, the mortgage delinquency rate has declined nearly 14 percent from 6.01 percent in Q4 2011. "The national mortgage delinquency rate experienced its largest yearly decline since the conclusion of the recession, though we still remain far above normal levels," said Tim Martin, group vice president of U.S. Housing in TransUnion's financial services business unit. "For the most part, newer vintage mortgage loans are not the reason for the stubbornly high delinquency rate. They are performing relatively well. The elevated delinquency levels that we still are experiencing are a result of older vintage loans—borrowers who haven't been making their payments for a rather long time that are still in the system, inflating the overall rate." During the height of the mortgage crisis, mortgage delinquencies rose 54 percent in 2007, 53 percent in 2008 and 50 percent in 2009. The subsequent decline has been a slow process with delinquency levels dropping seven percent in 2010, six percent in 2011 and now falling 14 percent in 2012. Thirty-seven states and the District of Columbia experienced improvement in their mortgage delinquency rates from last quarter. Only three states did not experience mortgage delinquency improvement from last year. At a more granular level, 81.4 percent of MSAs experienced a yearly decline in their mortgage delinquency rate. Notable MSAs experiencing declines included Los Angeles (-33.6 percent), Memphis (-32.2 percent), Philadelphia (-28.3 percent), Detroit (-27.2 percent) and Baltimore (-26.0 percent). TransUnion expects the mortgage delinquency rate to continue its downward trend in the first quarter of 2013, though it will likely remain above five percent. "The declines in the mortgage delinquency rate will likely be muted for the foreseeable future as the foreclosure process in some states can take more than 1,000 days," said Martin. "It's not clear yet, but recently announced regulatory rules related to mortgage servicing may tend to slow down this process further. What is clear from the data TransUnion collects, is that, until the old vintages work through the system, we expect the delinquency rate to remain elevated." TransUnion's forecast is based on various economic assumptions, such as gross state product, consumer sentiment, unemployment rates, real personal income, and real estate values. The forecast would change if there are unanticipated shocks to the economy affecting recovery in the housing market or if home prices fall more than expected.
Published
Feb 12, 2013
Planet Home Lending Reports Total Origination Volume Of $6.8B In Q2 2021

Planet Home Lending's total origination volume reached $6.8 billion in Q2 2021, up 77% from $3.9 billion in Q2 2020.

Industry News
Jul 22, 2021
FHFA Ends Controversial Refinance Fee

The FHFA announced that Fannie Mae and Freddie Mac will eliminate the Adverse Market Refinance Fee for loan deliveries, starting August 1, 2021.

Analysis and Data
Jul 19, 2021
Interfirst Mortgage Launches ONE, Backed By Non-Owner Occupied Properties

ONE is a unique product built on a single interest rate with no adjustments and qualifies off the cash flow of the rental property.

Industry News
Jul 16, 2021
Global Digital Lending Market Projected To Reach $27B By 2028

The Global Digital Lending Platform Market was valued at $7.14 billion in 2020 and is projected to reach $27.07 billion by 2028.

Analysis and Data
Jul 14, 2021
FOMC Discusses Raising Interest Rates

Inflationary pressures have finally forced the Federal Open Market Committee (FOMC) to discuss raising interest rates and tapering its bond-buying program.

Analysis and Data
Jul 14, 2021
Fathom Holdings Inc. Creates New Hispanic Division

Fathom Holdings Inc., a technology-driven real estate platform, announced the creation of their Hispanic Division to more adequately serve this fast-growing demographic. 

Industry News
Jul 07, 2021