90-Day Default Rate Stable, LPS Reports

Posted by Orb Staff on June 01, 2010 No Comments
Categories : Mortgage Servicing

http://www.lpsvcs.com/NEWSROOM/INDUSTRYDATA/Pages/default.aspx]Lender Processing Services Inc.[/link]'s (LPS) latest Mortgage Monitor report indicates that signs of stabilization in the nation's home loan delinquency and foreclosure rates remain largely neutralized by the more than 7 million loans in distress. According to the report, the number of loans 90 or more days delinquent (including pre-sale foreclosure) declined 112,184 – from almost 4.19 million to 4.07 million – between March and April, with the total number of non-current U.S. loans plus loans in real estate owned status just over 7.3 million (extrapolated to represent total mortgage market). Conversely, deterioration ratios remain high, with two loans rolling to a ‘worse’ status for every one loan that has improved. The overall volume of loans moving from delinquent-to-current status declined to a three-month low, supported primarily by ‘artificial cures’ associated with the Home Affordable Modification Program modifications, LPS says. In addition, newly delinquent loans (i.e., those loans that were current at year-end 2009 but 60 or more days delinquent as of April) have declined from the 2009 levels but still remain extremely high from a historical perspective, particularly within prime product. The total loan delinquency rate in April was 8.99%,, and the foreclosure inventory rate was 3.18%, according to LPS. The total U.S. non-current loan rate for the month was 12.17%. Florida, Nevada, Mississippi, Arizona, Georgia, California, Illinois, New Jersey, Michigan and Rhode Island were the states with the most non-current loans, LPS adds. SOURCE: [link=http://www.lpsvcs.com/NEWSROOM/INDUSTRYDATA/Pages/default.aspx]Lender Processing Services

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