Mortgage Delinquency Landscape Continues to Shrink
August 8, 2017
A new data report issued by CoreLogic has determined that 4.5 percent of mortgages were in some stage of delinquency during May, down 0.8 percent on a year-over-year measurement. The foreclosure rate in May was 0.7 percent, down from one percent in May 2016, while the serious delinquency rate—defined as 90 days or more past due including loans in foreclosure—was two percent, unchanged from April and down from 2.6 percent one year earlier; the serious delinquency rate is the lowest since November 2007, when it was also two percent.
The rate for early-stage delinquencies—defined by CoreLogic 30 to 59 days past due—was 1.9 percent in May, a two percent drop from one year earlier. And the share of mortgages that were 60 to 89 days past due in May was 0.63 percent, slightly lower than the 0.66 percent share from the previous year.
"A prolonged period of relatively tight underwriting criteria has driven delinquencies down to pre-crisis levels across many parts of the country," said Frank Martell, President and CEO of CoreLogic. "As pressure to relax underwriting standards increases, the industry needs to proceed carefully and take progressive, sensible actions that protect hard-fought improvements in mortgage performance."