twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.


30-Day Rate Worse as Foreclosures and 90-Day Delinquency Down

Residential delinquency rate down 38 BPS in Q3

Nov. 15, 2012

By Mortgage Daily staff


Powered by an improvement in the 90-day delinquency rate, overall quarterly delinquency and foreclosure rates were lower. But there was an uptick in early-stage late payments on home loans.

The 30-day rate of residential delinquency, including loans in the foreclosure inventory, ended the third quarter at 11.47 percent.

The past-due level was lower than the 11.85 percent second-quarter rate. It was also lower than the third-quarter 2011, when 30-day delinquency was 12.42 percent.

The findings were discussed in the National Delinquency Survey for the third-quarter 2012 released Thursday by the Mortgage Bankers Association. The latest report is available at a cost of $175 for non-MBA members and $75 for members.

Delinquency was based on 41,774,048 mortgage serviced as of Sept. 30. The prior quarter's total loans were 42.5 million.

Excluding foreclosures, the seasonally adjusted 30-day rate was 7.40 percent, lower than 7.58 percent in the prior survey and also better than 7.99 percent in the third-quarter 2011.

The rate was highest in Mississippi at 13.10 percent. Georgia followed at 10.39 percent, then 10.18 percent in Louisiana. Thirty-day delinquency, excluding foreclosures, was under 10 percent in all other states. North Dakota was lowest at 3.10 percent.

On prime mortgages, delinquency was 4.66 percent, 22 BPS lower than the second-quarter rate. Subprime delinquency fell 26 BPS to 20.62 percent.

Late payments on mortgages insured by the Federal Housing Administration improved to 11.14 percent from 11.89 percent three months earlier and 12.09 percent a year earlier. VA-guaranteed loan delinquency fell to 6.34 percent from 6.65 percent and was 6.58 percent in the third-quarter 2012.

The 90-day-rate -- which dropped to 2.96 percent as of Sept. 30 from 3.19 percent three months earlier -- drove the overall increase, according to MBA Vice President of Research and Economics Mike Fratantoni.

"The 90 day delinquency rate is at its lowest level since 2008, and together with the decline in the percentage of loans in foreclosure, this indicates a significant drop in the shadow inventory of distressed loans-a real positive for the housing market," Fratantoni said in an accompanying news release "The 30 day delinquency rate increased slightly, but remains close to the long-term average for this metric. Given the weak economic and job growth in third quarter, it is not surprising that this metric has not improved."

Fratantoni explained that the 90-day rate can be expected to inflate if the foreclosure initiation process is delayed by states, with servicers forced to categorize the loans as 90-days delinquent instead of as in foreclosure.

MBA reported that the 90-day delinquency rate on FHA-insured loans was 4.37 percent, lower than 5.03 percent as of June 30 and 5.11 percent as of Sept. 30, 2011. Factoring in foreclosures, the rate goes from 9.26 percent at the end of the second quarter to 8.45 percent at the end of the third quarter.

While MBA's survey reflects an improvement in FHA serious delinquency, FHA's own operational results indicate that 90-day delinquency, based on the number of loans, increased to 9.58 percent as of the end of the third quarter from 9.44 percent as of the end of the second quarter. The disparity suggests that FHA performance has been worse at mega-banks versus the smaller companies surveyed by MBA.

"After large second quarter increases in the foreclosure starts and inventory rates for FHA loans due to the actions by some large servicers to re-start foreclosure processes that had been stalled, these rates fell in the third quarter but remain above where they were in the first quarter of 2012," Fratantoni said.

The foreclosure inventory as of Sept. 30 on all loans was a non-seasonally adjusted 4.07 percent, 20 basis points better than the prior period. It was "the largest quarterly drop in the history of the survey."

At the same point last year, the foreclosure rate was 4.43 percent.

Fratantoni said that foreclosure starts fell to the lowest level since 2007.

With a 13.04 percent foreclosure rate, Florida -- where courts frequently rule in favor of delinquent borrowers based on technicalities -- had the worst standing in this category. No other state had a foreclosure rate above 10 percent -- though New Jersey's 8.87 percent, Illinois' 6.83 percent and New York's 6.46 percent were high.

"The foreclosure rates in Maryland, Washington and New Jersey continue to be impacted by state efforts to slow the foreclosure process and by servicers who have to adjust their internal foreclosure processes based on state requirements," Fratantoni said. "As a result, these states often fluctuate between large increases in foreclosure starts accompanied by large decreases in 90 day delinquencies in a single quarter, or large increases in 90 day delinquencies accompanied by large decreases in new foreclosures started."

At 0.76 percent, Wyoming had the lowest foreclosure rate.

The foreclosure rate on prime mortgages was cut to 2.97 percent in the third quarter from 3.12 percent, while the foreclosure rate fell to 12.38 percent from 13.63 percent in the second quarter on subprime mortgages.

FHA loans had a foreclosure rate of 4.08 percent, 15 BPS less than as of June. The VA foreclosure rate fell 7 BPS to 2.21 percent.

purchase National Delinquency Survey

next story

back to current headlines




FHA News | Government Resources | M o r t g a g e e Letters | FHA Statistics
FHA, VA and HECM mortgage news. HUD and G i n n i e news also. Originations, servicing and FHA approval.



Nonprime and Subprime News | Subprime Statistics
Stories about non-QM products. Coverage of subprime, Alt-A and
hard money lending. Home-equity loans and home-equity lines of credit.


Logout forgot
password?

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders