Survey: State near top in U.S. in non-current loans

ACROSS MISSISSIPPI — The December Mortgage Monitor report released by Lender Processing Services Inc. shows a continued increase in the inventory of foreclosed mortgages as more loans advance through the default process. And Mississippi ranks near the top in most non-current loans.

The number of newly delinquent loans declined during 2010, helping push overall delinquent inventories down 18 percent for the year. The volume of loans moving to REO remains extremely low as moratoria and process reviews continue, further pressuring foreclosure inventories.

While the 90-days+ delinquency category has declined, the number of loans moving to seriously delinquent status beyond 90 days still far outpaced the number of foreclosure starts. Just over 2.1 million loans are 90 days or more delinquent but not yet in foreclosure, with nearly 6.9 million loans in some stage of delinquency or foreclosure. The total number of delinquent loans is nearly twice as high as historical averages – and foreclosure inventory is currently 7.8 times higher than historical averages and is rising.

The report also shows that over one-third of borrowers with loans that are 90 days or more delinquent have not made a payment in over a year. Self-cures for loans one-to-two months delinquent declined slightly in December, and late-stage cures, usually related to modification activity, continue to decline. In December, 259,518 loans were referred to foreclosure, which represents a 0.6 percent month-over-month decline.

Origination activity continues to increase with new production in November reaching 2010 highs. While FHA originations have declined, the share of agency loans increased, and 95 percent of all new issuance remains government supported.

As reported in LPS’ First Look release, other key results from LPS’ latest Mortgage Monitor report include:

• Total U.S. loan delinquency rate: 8.83 percent

• Total U.S. foreclosure inventory rate: 4.15 percent

• Total U.S. non-current loan rate: 12.98 percent’

• States with most non-current loans: Florida, Nevada, Mississippi, Georgia, New Jersey

• States with fewest non-current loans: North Dakota, South Dakota, Alaska, Wyoming, Montana

Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.

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