Mortgage Daily Logo

REOs Soar

Mortgage News

The number of completed foreclosures shot up more than 20 percent from December to January, a new industry report indicated. While subprime mortgages accounted for just over one-tenth of loans serviced in January — they accounted for more than half of homes repossessed.

Delinquency of at least 60 days was 5.43 percent on Jan. 31, according to a report today from HOPE NOW. Late payments rose from 5.23 percent on Dec. 31, 2008, and 3.17 percent on Jan. 31, 2008.

The findings were extrapolated from data on 38.4 million loans serviced by 26 HOPE NOW alliance members as of Jan. 31. The group serviced around 72 percent of all U.S. residential loans. Extrapolating the group’s total out to the entire industry, around 53,499 residential loans were outstanding on Jan. 31, the same as on Dec. 31, 2008, but fewer than the 54,103 on Dec. 31, 2007.

Included in the total were 32.7 million prime mortgages and 5.7 million subprime loans.

Prime mortgage delinquency was just 3.74 percent at the end of January, rising from 3.56 percent at the end of the prior month.

While subprime mortgages accounted for just 12 percent of loans serviced in January, they accounted for 40 percent of delinquent loans. Subprime late payments were 17.76 percent, up from 17.40 percent on Dec. 31.

Foreclosures were started on 217,000 loans during the most recent month, increasing from 203,000 in December and 169,000 in January 2008. Prime foreclosures started were 126,000, while there were 91,000 subprime foreclosures initiated.

Completed foreclosures climbed 21 percent to 68,000 during January from 56,000 a month earlier but were lower than 71,000 a year earlier. New subprime real estate owned filings were 38,000 and prime REOs were 30,000.

“It’s clear that the mortgage problem is still growing,” HOPE NOW Executive Director Faith Schwartz said in the statement.

But REOs have generally been trending lower since peaking at 91,752 in July 2008. However, a moratorium implemented by Fannie Mae and Freddie Mac on conforming loans through January as well as other privately and publicly implemented moratoria during the second half of last year may or may not have a lasting impact.

The industry reportedly completed 123,000 modifications in January, rising from 122,000 one month prior and 56,000 12 months prior. The latest month’s modifications included 89,000 on subprime loans and 35,000 on prime loans.

The group noted, however, that between 30 and 40 percent of modified loans become at least 90 days past due within six months after modification based on 2008 data. Modifications on loans backing private label securitizations accounted for 55 percent of January modifications, portfolio loan modifications represented 22 percent and government-sponsored enterprise loan modifications made up 17 percent. Ginnie Mae modifications were 3 percent of January activity.

Formal repayment plans were initiated on 125,000 mortgages during January, up from December’s 117,000 and the prior year’s 120,000. The latest month’s total reflected repayment plans initiated on 77,000 prime loans and 47,000 subprime loans.

While delinquency rose 4 percent from December, total workouts were also up 4 percent.

Related Posts

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

There is No Such Thing as a Free House …

Over the past several years, those who service loans in the State of Washington(1) have seen a dramatic rise in the number of lawsuits in which delinquent borrowers seek to quiet title to their homes on the grounds that lenders are barred from foreclosing based on...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

The Mortgage Graveyard 2018 Archives

The Mortgage Graveyard 2018 Archives Failed, Struggling and Acquired Mortgage-Related Companies Non-Bank Closures 3 Bank Failures (FDIC) 0 Credit Union Failures 0 Total Mortgage-Related Failures 3  

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

MBS Statistics

MBS Statistics Non-Agency Issuance 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 Private Label RMBS Issuance (S&P) $80 billion to $100 billion (est) $70 billion $34...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Sample E-Mail

Sample E-Mail   Covering the Real Estate Finance Since 1999  Mortgage Industry News free news content | view headlines online  Advertorial Text Ad This ad includes a linked bold headline of up to 50 characters and up to 100 words of text. The ad can be...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI