Mortgage report finds state ranks high in bad loans
by Wally Northway
Published: March 16,2010
The Feb. 2010 Mortgage Monitor report, released by Lender Processing Services Inc., shows that while delinquency rates in the U.S. have risen to historic highs, the pace of deterioration has slowed. However, the nation’s housing market remains far from a full recovery, and Mississippi has the third-highest non-current loans in the nation.
Based on data extrapolated from the LPS servicing database, nearly 7.5 million loans are in some stage of delinquency or foreclosure, with an additional one million properties in REO or post-sale foreclosure. In addition, approximately 2.5 million loans that were current Jan. 1, 2009, were 60 or more days delinquent (including foreclosures) as of Jan. 31, 2010. Despite extraordinary loss mitigation efforts that have resulted in the execution of approximately two million loan modifications, including the federal government’s Home Affordable Modification Program (HAMP) trial periods, the number of new delinquencies since Jan. 1, 2009, still exceeds this number by 25 percent.
The nation’s pool of problem loans continues to grow and stagnate. More than 31 percent of loans that have been delinquent for six months are not yet in foreclosure, while 22.8 percent of loans delinquent for 12 months have not been moved to foreclosure status (up from 9.0 percent in 2008).
Older loans now make up a higher proportion of new delinquencies, as more loans experience repeat delinquencies. The average loan age of newly delinquent loans is now 46 months, as compared to an average newly delinquent loan age of 27 months in Jan. 2007. During Jan. 2010, 346,000 borrowers became delinquent for the first time, representing approximately 40 percent of all newly delinquent loans for the month.
Other key results from LPS’ Jan. 2010 Mortgage Monitor include:
• Total U.S. loan delinquency rate — 10.2 percent
• Total U.S. foreclosure inventory rate — 3.3 percent
• Total U.S. non-current loan rate — 13.5 percent
• States with most non-current loans — Florida, Nevada, Mississippi, Arizona, Georgia, California, Indiana, Illinois, Michigan and Ohio
• States with fewest non-current* loans — North Dakota, South Dakota, Alaska, Wyoming, Montana, Nebraska, Vermont, Colorado, Oregon and Washington
To sign up for Mississippi Business Daily Updates, click here.
2 Responses to “Mortgage report finds state ranks high in bad loans”
Twang & Tourism: The Country Music Trail
Still planning that summer vacation?
FOLLOW THE MBJ ON TWITTERMy Tweets
Top Posts & Pages
- Prescription for success — Transcript Pharmacy continues fast growth
- Study: Mississippi has highest sales tax rate in U.S.
- MSU researchers develop timber-management software
- New law on taxing methods hailed as big win for businesses
- Panther Creek megasite — Putting a value proposition out there
- Nehi Bottling Company has been a Cleveland fixture for 85 years
- BBB issues warning involving asphalt paving scam
- Panther Creek's location in medical industry zone boosts bio-med prospects
- Running luxury car dealerships, like Mercedes of Jackson, comes naturally to Trudy Higginbotham Moody
- Baker Donelson's David A. Rueff Jr. co-authors guide