The U.S. delinquency rate registered a 7.7% increase in September, according to new data from Jacksonville, Fla.-based Lender Processing Services (LPS).
LPS adds that newly available origination data provides insight into the increase: After allowing a month for loan data to board, originations in August were found to be up 13.2% month-over-month and 42.1% year-over-year, reaching their highest point since 2009. However, the company stresses this should not be seen as the start of new wave of delinquencies.
‘September's increase in the delinquency rate was indeed significant, but the overall trend is still one of improvement,’ says LPS Applied Analytics Senior Vice President Herb Blecher. ‘Despite the monthly jump, delinquencies are down 30 percent from their January 2010 peak, and our analysis revealed some interesting factors related to the spike. Of course, one month's data does not indicate a trend.
‘September 2012 was notable in its short duration of business days and virtually all transactional or operational metrics we observed declined in volume for the month; foreclosure starts, foreclosure sales, delinquent cures and loan prepayments all dropped from their August levels,’ Blecher adds. ‘It is important to note that we also saw the percentage of re-defaulting modifications contributing to the delinquency rate actually declined from the month prior.’