Modest improvements in the number of loans curing to current and reductions in total new delinquencies are still overshadowed by a large pool – 7.39 million – of non-current and real estate owned (REO) loans, according to Lender Processing Services Inc.'s (LPS) Mortgage Monitor report, which covers data through the end of March.
Several of the nation's largest states by population – including Florida, Nevada, New Jersey, Arizona, California, Illinois, Indiana and Ohio – showed foreclosure inventories at a higher percentage than the average national foreclosure rate of 3.27%. Overall, the number of non-current loans across the nation has declined over the past six months, but 16 states showed an increase in the number of non-current loans.
Total delinquencies, excluding foreclosures, decreased 10.3% from February to March 2010; however, the total represents a year-over-year increase of 15.7%, LPS says. Similarly, March's foreclosure rate stands at 3.27%, representing a month-over-month decrease of 1.2% but a year-over-year increase of 32.9%.
The number of loans moving from seriously delinquent into foreclosure rose in March, after hitting historic lows in February.
The impact from the federal government's Home Affordable Modification Program (HAMP) is evident in the improved level of loan cure rates, LPS says, as trial modifications are converted to official loan modifications. Elevated levels of early-stage cures (loans 30-Â to 60-days delinquent) indicate a higher rate of self-cures.
SOURCE: Lender Processing Services Inc.