Tuesday, March 26, 2013

LPS: Mortgage delinquencies decreased in February

by Bill McBride on 3/26/2013 08:15:00 AM

According to the First Look report for February to be released today by Lender Processing Services (LPS), the percent of loans delinquent decreased in February compared to January, and declined about 6.5% year-over-year. Also the percent of loans in the foreclosure process declined further in February and were down significantly over the last year.

LPS reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) decreased to 6.80% from 7.03% in January. Note: the normal rate for delinquencies is around 4.5% to 5%.

 The percent of loans in the foreclosure process declined to 3.38% in February from 3.41% in January. 

The number of delinquent properties, but not in foreclosure, is down about 8% year-over-year (301,000 fewer properties delinquent), and the number of properties in the foreclosure process is down 21% or 449,000 properties year-over-year.

The percent (and number) of loans 90+ days delinquent and in the foreclosure process is still very high, but the number of loans in the foreclosure process is now steadily declining.

LPS will release the complete mortgage monitor for February in early April.

LPS: Percent Loans Delinquent and in Foreclosure Process
Feb 2013Jan 2013Feb 2012
Delinquent6.80%7.03%7.28%
In Foreclosure3.38%3.41%4.20%
Number of properties:
Number of properties that are 30 or more, and less than 90 days past due, but not in foreclosure:1,927,0001,974,0002,002,000
Number of properties that are 90 or more days delinquent, but not in foreclosure:1,483,0001,531,0001,709,000
Number of properties in foreclosure pre-sale inventory:1,694,0001,703,0002,143,000
Total Properties5,104,0005,208,0005,854,000