Skip to main content

Serious Delinquencies Spike Despite Heightened Housing Demand

Navi Persaud
Oct 14, 2020
A man with his hand to his head stressed over bills.

CoreLogic's Loan Performance Insights for July 2020 reported that serious delinquencies reached 4.1%, its highest rate since April 2014. The LPI also showed 6.6% of mortgages were in some stage of delinquency nationwide in July 2020, a 2.8% increase to the overall delinquency rate compared to July 2019.

According to the report, early-stage delinquencies (30 to 59 days past due) dipped to 1.5% from 1.8% the previous year and was also down from April's 4.2% spike. Adverse delinquency (60 to 89 days past due) increased stood at 1%, down from 2.8% in May. Additionally, the foreclosure inventory rate came in at 0.3%, the lowest for any month in at least 21 years, according to the report.

While home values continue to increase at a substantial rate, CoreLogic reports that the unemployment levels are still quite high in some of the harder impacted areas across the U.S. The report also finds that many Americans are tapping into their savings in order to stay current on their home loans and as those savings run out, borrowers may inevitably be pushed further into the delinquency funnel.

"Many Americans, particularly millennials, are taking advantage of low rates to either purchase their first home or upgrade their living situations," said Frank Martell, president and CEO of CoreLogic. "However, given the unsteadiness of the job market, many homeowners are beginning to feel the compounding pressures of unstable income and debt on personal savings buffers, creating a heightened risk of falling behind on their mortgages."

"Four months into the pandemic, the 120-day delinquency rate for July spiked to 1.4%," said Dr. Frank Nothaft, chief economist at CoreLogic. "This was the highest rate in more than 21 years and double the December 2009 Great Recession peak. The spike in delinquency was all the more stunning given the generational low of 0.1% in March."

CoreLogic also reported that all states logged annual increases in both overall and serious delinquency rates in July. The company also predicts that U.S. metros that were hit hard by job loss in the oil and gas industries such as Odessa, Texas, are projected to leave millions of jobs unrestored throughout the remainder of the year.

Published
Oct 14, 2020
Reports: Evergrande Group Arranges Bond Extension

Reuters, REDD say company's billionaire chairman has agreed to provide additional collateral to ensure a construction project tied to a $260M bond is completed.

Industry News
Oct 21, 2021
New American Funding Hires Regional Manager

Mark Tribuna will lead effort to expand company's partnership with affordable nonprofit builders in mid-Pacific region

Industry News
Oct 21, 2021
Rocket Pro Announces Initiatives To Boost Brokers

Company brings Rocket Tech, the Rocket Network and Rocket Marketing to mortgage brokers across the country

Industry News
Oct 19, 2021
FormFree Taps Amazon Web Services For Consumer Financial Identity Solutions

FormFree will use Amazon's blockchain technology to manage its latest consumer Financial DNA solution and its newly introduced FormFree Exchange.

Tech
Oct 19, 2021
Synergy One Lending Increases Its Capital By $50M

San Diego-based Synergy One Lending Inc. completed a $50 million corporate note financing with a consortium of institutional investors.

Industry News
Oct 19, 2021
TransUnion Sees Untapped Growth Opportunity For The Mortgage Industry

A study conducted by TransUnion, which explores the creditworthiness of low-to-moderate income consumers, revealed that the segment represents a $300 billion growth opportunity for the mortgage industry.

Analysis and Data
Oct 19, 2021