S&P Updates Estimate On Shadow Inventory Clearance

Posted by Orb Staff on May 10, 2012 No Comments
Categories : Mortgage Servicing

11522_dark_house S&P Updates Estimate On Shadow Inventory Clearance Standard & Poor's Rating Services (S&P) has updated its estimate of the time it will take to clear the U.S. residential shadow inventory.

According to S&P, the shadow inventory clearance timeline fell one month to 46 months in the first quarter of this year. The ratings agency says that although national residential mortgage liquidation rates appeared stable in the first quarter, these rates varied widely between states, preventing a significant reduction in the agency's months-to-clear estimate.

‘On a more positive note, the rate at which properties enter the shadow inventory slowed during the first quarter to the lowest level since May 2007,’ says Jacques Alcabes, S&P credit analyst.

S&P published its findings in the new report entitled ‘First-Quarter 2012 Shadow Inventory Update: National Liquidation Rates Moderate, While Regional Differences Widen,’ which is available on its Global Credit Portal website.

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