In Depth Analysis: CalculatedRisk Newsletter on Real Estate (Ad Free) Read it here.

Wednesday, June 20, 2012

LPS: Mortgage delinquencies increased in May

by Calculated Risk on 6/20/2012 09:00:00 AM

LPS released their First Look report for May today. LPS reported that the percent of loans delinquent increased in May from April, and declined year-over-year. The percent of loans in the foreclosure process decreased slightly and remains at a very high level.

LPS reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) increased to 7.20% from 7.12% in March. The percent of delinquent loans is still significantly above the normal rate of around 4.5% to 5%. The percent of delinquent loans peaked at 10.97%, so delinquencies have fallen over half way back to normal. The increase was in the less than 90 days delinquent category.

The following table shows the LPS numbers for May 2012, and also for last month (April 2012) and one year ago (May 2011).

LPS: Percent Loans Delinquent and in Foreclosure Process
In Foreclosure4.12%4.14%4.11%
Number of loans:
Loans Less than 90 days1,967,0001,927,0002,265,000
Loans More than 90 days1,575,0001,595,0001,921,000
Loans In foreclosure2,027,0002,048,0002,164,000

The number of delinquent loans, but not in foreclosure, is down about 15% year-over-year (644,000 fewer mortgages delinquent), and the number of loans in the foreclosure process is down 6% or 137,000 year-over-year (the percent in foreclosure is mostly unchanged, but the number of total loans has declined).

The percent of loans less than 90 days delinquent is about normal, but the percent (and number) of loans 90+ days delinquent and in the foreclosure process are still very high.