Mortgage Daily Logo

Continued Improvement in 1st Mortgage Delinquency

Mortgage News

First-mortgage delinquency has fallen three months in a row. While the second-mortgage rate was down from the prior month, it was worse than a year ago.

The Composite Consumer Credit Default Index indicates that 90-day delinquency fell 5 basis points from a month earlier to 0.81 percent in May.

The index — which reflects performance on automobile loans, bank cards, and first and second mortgages — was
down from 0.88 percent a year previous.

S&P Dow Jones Indices LLC and Experian jointly reported the index Tuesday.

“Consumer credit default rates continue at the lowest levels in more than 10 years and well below those seen before the financial crisis,” David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, said in the report. “These positive developments are supported by continued gains in the economy: an unemployment rate under 5 percent, combined with increases in incomes and wages and stable prices. Debt-service ratios remain close to record lows, while outstanding consumer credit and mortgage debt have risen modestly this year.”

With a 12-basis-point decline from April to 0.89 percent as of last month, New York had the biggest month-over-month improvement of any of the five-largest metropolitan statistical areas.

In Los Angeles, the May 2016 ninety-day rate on consumer credit was 0.67 percent — the lowest of any of the five MSAs.

Miami was the only MSA of the five to see deterioration — 6 BPS to 1.27 percent (the highest rate of the largest MSAs).

On
just first mortgages, the U.S. rate of 90-day delinquency was 0.63 percent, tumbling 6 BPS from April.

First-mortgage delinquency has declined each month since February, when the rate was 0.84 percent.

Serious first-mortgage delinquency also was better than in May 2015, when the rate was 0.74 percent.

Second-mortgage serious delinquency was 0.51 percent as of May 31.

The second-mortgage 90-day rate
improved by 7 BPS compared to a month earlier.

But serious second-mortgage delinquency has worsened by 9 BPS compared to a year earlier.

Related Posts

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Third-Quarter 2012 Mortgage Litigation Index

Lawsuits involving excessive fees, servicing fees and loan fees beyond state maximums. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Fannie Mae and Freddie Mac Orangeburg County, Richland County, South...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Net Branch Lawsuits

Litigation involving net branch operations. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story PHH Mortgage Corp. Mathews Supreme Court of Virginia na Court held that the term "branch office" includes not only...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Whistleblower Lawsuits

Litigation related to loan servicing, including escrow issues, transfer of servicing and servicing borrowers in bankruptcy and foreclosure.   Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Bank of...

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 paperwork has 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 furniture need to...

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...

Newsletter

Don’t worry, we don’t spam