Wednesday, July 25, 2012

LPS: Mortgage delinquencies increased in June

by Calculated Risk on 7/25/2012 04:46:00 PM

Note: "LPS has updated its extrapolation methodology. This improves estimates of market size (and includes wider coverage of both government and subprime products) and increases LPS' estimate of the total first lien residential mortgage market by three percent to 50.4 million." LPS has kindly provided me with some updated historical data for the table below.

LPS released their First Look report for June today. LPS reported that the percent of loans delinquent increased in June from May, and declined year-over-year. The percent of loans in the foreclosure process decreased in June, but 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 7.14% from 6.91% in May. 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 10.57%, so delinquencies have fallen over half way back to normal. The increase was mostly in the less than 90 days delinquent category.

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

LPS: Percent Loans Delinquent and in Foreclosure Process
12-Jun12-May11-Jun
Delinquent7.14%6.91%7.71%
In Foreclosure4.09%4.17%4.13%
Number of loans:
Loans Less Than 90 Days2,012,0001,923,0002,229,000
Loans 90 Days or more1,590,0001,571,0001,752,000
Loans In Foreclosure2,061,0002,110,0002,133,000
Total5,663,0005,604,0006,114,000

The number of delinquent loans, but not in foreclosure, is down about 10% year-over-year (379,000 fewer mortgages delinquent), and the number of loans in the foreclosure process is down 3% or 70,000 year-over-year.

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