Report finds loan delinquencies soaring
JACKSONVILLE, Fla. — The January 2010 Mortgage Monitor report, released by Lender Processing Services Inc. (LPS), showed that home loan delinquency rates in the U.S. have now surpassed 10 percent.
Factoring in foreclosures in process, according to the data in LPS’ database, the total non-current rate sits at 13.3 percent. When extrapolated to reflect the entire mortgage industry, this rate indicates that more than 7.2 million mortgage loans are now behind on payments. In addition, an estimated one million properties are now owned by banks. Within the population of loans that were current as of year-end 2008, the percent of “new” serious delinquencies is 4.64 percent – higher than any other year analyzed for the same period. Of loans that were current as of Dec. 31, 2008, by Dec. 2009 there were 2.3 million new loans that were considered seriously delinquent. Prime loans, including agency, non-agency and jumbo, have experienced deterioration at a worse pace on a relative basis than subprime, FHA and all loans as a whole. Within the prime loans category, loans with current unpaid principal balances between $417,000 and $600,000 have performed the worse.
The Mortgage Monitor report also indicates that 2009 vintage loans are performing better than loans from any of the prior five years and have been steadily improving as more origination months are added to the pool of loans. This improvement is attributed to more restrictive underwriting guidelines. The report also noted that liquidity is still not available where it is needed most.
To sign up for Mississippi Business Daily Updates, click here.
Twang & Tourism: The Country Music Trail
Still planning that summer vacation?
FOLLOW THE MBJ ON TWITTERMy Tweets
Top Posts & Pages
- Study: Mississippi has highest sales tax rate in U.S.
- Prescription for success — Transcript Pharmacy continues fast growth
- New law on taxing methods hailed as big win for businesses
- Panther Creek megasite — Putting a value proposition out there
- Panther Creek's location in medical industry zone boosts bio-med prospects
- Nehi Bottling Company has been a Cleveland fixture for 85 years
- Counties ‘hoping to get it right’ as they await Tuscaloosa Marine shale boom
- News The Way You Want It!
- MSU researchers develop timber-management software