Foreclosure starts at the government-sponsored enterprises have been accelerating and are currently at all-time highs, according to Lender Processing Services Inc.'s (LPS) latest Mortgage Monitor report, which includes data through the end of June. Most of the increase in foreclosure starts is occurring at very late stages of delinquency (i.e., more than six months) and is likely driven by the recent increase in Home Affordable Modification Program (HAMP) cancellations, the firm reports.
LPS says the cure volume improved slightly from May to June, with increases in both ‘self cures’ (loans that are one to two months delinquent), as well as the "artificial cures" (predominantly HAMP).
The company says that for every two loans that deteriorate, one loan improves.
Originations remain very low, LPS adds, noting that stricter underwriting has driven relatively low first-payment default rates.
SOURCE: Lender Processing Services