Mortgage Delinquency Rate Remains at 12-Year Low – NMP Skip to main content

Mortgage Delinquency Rate Remains at 12-Year Low

Phil Hall
Nov 13, 2018
The frequency of defects, fraudulence and misrepresentation in the information submitted in October for mortgage applications was down by 4.8 percent from one year ago, according to data from First American Financial Corp.

Four percent of mortgages were in some stage of delinquency during August, according to new data from CoreLogic. This represents a 0.6 percentage point decline from August 2017, when the rate was 4.6 percent.
 
The foreclosure inventory rate in August was 0.5 percent, down 0.1 percentage point from one year earlier. The August rate tied with the rate recording in April, May, June and July as the lowest for any month since September 2006, when it was also 0.5 percent.
 
The rate for early-stage delinquencies was 1.8 percent in August 2018, down from 2 percent one year earlier. The share of mortgages that were 60 to 89 days past due in August was 0.6 percent, compared to 0.7 percent in August 2017. And the serious delinquency rate was 1.5 percent in August, down from 1.9 percent in August 2017. This serious delinquency rate was the lowest for August since 2006 when it was 1.4 percent, and the lowest for any month since March 2007 when it was also 1.5 percent.
 
No state posted an annual gain in the overall delinquency rate, while Alaska was the only state to post an annual gain in the serious delinquency rate.
 
“Declines in delinquency rates are good news for America’s homeowners and mortgage lenders,” said Frank Martell, President and Chief Executive Officer of CoreLogic. “However, risks that create loan default like natural disasters, overvalued markets and an eventual rise in unemployment remain in the market. CoreLogic Market Conditions Indicator data has identified more than one-third of metropolitan areas are overvalued, putting them at risk of price declines and rising delinquencies if local job losses should occur.”
Four percent of mortgages were in some stage of delinquency during August, according to new data from CoreLogic

 
Published
Nov 13, 2018
Mortgage Industry Will Soon Be ARMed To The Teeth

ARM loans might be a saving grace to borrowers who recently purchased a home, but it comes with risks.

Industry News
May 20, 2022
Battle Between Loan Originators Gets Sparkly and Dirty

Flowers is suing both Durosko and Peevey for these pranks, demanding compensation for their harmful acts, but that doesn’t tell the whole story. 

Industry News
May 18, 2022
FirstClose Receives $35M Investment From Lateral

Fintech says it will use the investment to expand its growing financial services footprint.

Industry News
May 18, 2022
Mortgage News Network Launches Podcast On Helping Underserved Borrowers

'Gated Communities' looks at why homeownership gap is increasing, and what lenders are doing to reverse the trend.

Industry News
May 17, 2022
Class Valuation Appoints EVP Of Valuation Modernization

Cristy Conolly will focus on removing bias from the equation in appraisals.

Industry News
May 17, 2022
Open Mortgage Appoints New Chief Financial Officer

Anthony Nolte, Open Mortgage's CFO since 2019, will transition to chief legal officer.

Industry News
May 17, 2022