Mortgage Delinquencies Inch Closer to Pre-Crisis Levels

The mortgage market has experienced four straight years of significant, sustained improvement in delinquent inventories as they are only 1.5 times their pre-crisis average at yearend 2013.

Data from Black Knight Financial Services showed that serious delinquencies—payments not made in 90 or more days—are down 14% in judicial states compared to 21% in nonjudicial states.

Additionally, the end of December 2013 represents the second consecutive year where foreclosure inventory nationwide continued to decline substantially, as it fell 30%, BKFS revealed.

For example, Massachusetts has seen its foreclosure pipeline ratio drop 49% since June 2013, while New York and New Jersey have come down 39% and 37%, respectively.

Meanwhile, California's—which enacted its Homeowner Bill of Rights at the beginning of 2013—foreclosure inventory increased by 36% during this six-month time period.

Overall, foreclosure pipelines in judicial states remains three times larger than nonjudicial ones, the Jacksonville, Fla.-based analytic provider says.

With 105,000, foreclosure starts ended 2013 at the lowest level since April 2007.

"In many ways, 2013 marked an abatement to crisis conditions in the U.S. mortgage market," says Herb Blecher, senior vice president of Black Knight Financial Services' Data & Analytics division. "New problem loan rates improved in both judicial and nonjudicial foreclosure states. In addition, due to stricter underwriting, 2013 originations have proven to be the best performing loans on record."

However, higher interest rates and the winter season pushed monthly originations to the lowest levels in five years as the refinancing wave the industry has observed for the last several years appears to have ended.

"With continued tapering anticipated by the market, opportunities for new originations will likely come from looser underwriting and/or home equity lending (which has shown a sizable increase in volume since last year)," Blecher added.

Comments (1)
May I ask where you people get your information from? Also, do you wish to make it look like things are turning around with the mortgage crisis? You better think again and do your research where you need to do it. Try land and county records first off, then go to you appraisal offices and look in each and every property under Bank of New York Mellon, Bank of America, Chase Bank, Wells Fargo, Midfirst Bank, Ocwen, Citi Bank and I could go on and on. Check Justia website and see how many homes are in court fighting foreclosure. Baby you haven't seen anything yet. And you certainly are not going to the right places to look for your information. I recently fought Bank of America regarding their Substitute Trustee's which they use to foreclose on Notice of Substitute Trustee Sales. One of their names listed stuck out like a sore thumb because his name was on mail articles I was receiving and on documents which had addresses in Fisher IN, Atlanta GA, but they all have 214 area codes on them. Well Bank of America backed off foreclosing on my property on January 7, 2014 but came back to give it another try submitting a news Notice of Substitute Trustee's Sale and this time omitting this persons name. Also, seems ReconTrust/Bank of America share all the same substitute trustee's with Wells Fargo Chase, Midfirst, Citi and on and on. So, watch your stock market which is manipulated by the Government and the Banks, watch your Land and County Records, watch your appraisal districts, and watch your home. Banks can't prove they own them but they have no problem taking them. Mortgage Crisis is far from over. I am here for the fight and I will question everything about my mortgage. America's Wholesale Lender a Corporation exisiting under New York Law, 4500 Park Granada, Calabasas, CA Mortgage of January 23, 2007 when HSSL or the hustle was in it's prime. Oh yes, Countrywide got me and put me right in the big middle of this mess. Even says my address to my deed of Trust is 3300 S W 34th Avenue, Sute 101, Ocala FL 34474 on the Assignment of Deed of Trust submitted by Bank of America October 4, 2011. My home 7 days after I purchased it and on February 1, 2007 was placed in a pool of mortgages CWABS 2007-2 which on this magical Assignment of Deed of Trust was entered into record 4 years 9-1/2 months after the pool closed. America's Wholesale Lender no longer in business by endorsement could not have done a assignment well legally anyway. Do your homework folks, interview the homeowner not the banks not the investors interview homeowners. Let them show you what they have. Your jaw will drop, your eyes pop out of your head and you will possibly even well faint.
Posted by Leah D | Tuesday, February 04 2014 at 8:39AM ET
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