Delinquencies Up, As Foreclosure Starts Remain High

Posted by Orb Staff on May 27, 2009 No Comments
Categories : Mortgage Servicing

delinquencies rose in April to 8.1%, while foreclosure starts declined from March's spike, [link=http://www.lpsvcs.com/NEWSROOM/INDUSTRYDATA/Pages/default.aspx][u]Lender Processing Services Inc.[/u][/link] (LPS) says in its May Mortgage Monitor, which is based on data collected through April 30. Although they are an improvement over March's record-high foreclosure starts, the April numbers still remain higher than all other prior months. The nation's foreclosure rate for the month stood at 2.7%. On the positive side, recent vintage loans are showing a clear and steady trend of improvement through reduced delinquency rates, and 2009 vintage loans have a lower default rate than 2004-2008 vintage loans. In addition, the May report indicates a steady increase in the number of loan modifications involving reductions in interest rates or unpaid principal balances (UPBs). The analysis of loans six months post-modification reveals that UPB reductions lower the redefault rate by 25%. This May Mortgage Monitor also analyzes delinquency and foreclosure rates by state and reports that although the national average of loans in some stage of delinquency or foreclosure is 10.8%, in Florida, almost one in five homes falls into this category – the highest percentage in the nation in April. SOURCE: Lender Processing S

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