LPS' Mortgage Monitor:
Foreclosure Inventory at an All-Time High
December 01, 2011
The
October Mortgage Monitor report released by Lender Processing Services,
Inc. (NYSE: LPS) shows mortgage delinquencies continue their decline,
now nearly 30 percent off their January 2010 peak. Meanwhile,
foreclosure inventories are on the rise, reaching an all-time high at
the end of October of 4.29 percent of all active mortgages. The average
days delinquent for loans in foreclosure extended as well, setting a new
record of 631 days since last payment, while the average days delinquent
for loans 90 or more days past due but not yet in foreclosure decreased
for the second consecutive month.
Judicial
vs. non-judicial foreclosure processes remain a significant factor in
the reduction of foreclosure pipelines from state to state, with
non-judicial foreclosure inventory percentages less than half that of
judicial states. This is largely a result of the fact that foreclosure
sale rates in non-judicial states have been proceeding at four to five
times that of judicial. Non-judicial foreclosure states made up the
entirety of the top 10 states with the largest year-over-year decline in
non-current loans percentages.
The October data also showed that mortgage originations are on the rise,
reaching levels not seen since mid-2010. Mortgage prepayment rates have
also spiked, as much of the new origination is related to borrower
refinancing; loans originated in 2009 and later are the primary drivers
of the increase. While FHA origination activity is down, GSE and FHA
originations still account for the vast majority of all new loans –
nearly nine out of every 10 new mortgages.
As reported in LPS' First Look release, other key results from LPS'
latest Mortgage Monitor report include:
Total U.S. loan delinquency
rate:
7.93%
Month-over-month change in
delinquency rate:
-2.0%
Total U.S. foreclosure
pre-sale inventory rate:
4.29%
Month-over-month change in
foreclosure pre-sale inventory rate:
2.5%
States with highest
percentage of non-current* loans:
FL, MS, NV, NJ, IL
States with the lowest
percentage of non-current* loans:
ND, AK, SD, WY, MT
*Non-current totals
combine foreclosures and delinquencies as a percent of active loans in
that state.
Notes:
(1) Totals are extrapolated based on LPS Applied Analytics' loan-level
database of mortgage assets.
(2) All whole numbers are rounded to the nearest thousand.
