Residential Delinquencies Fall After Spiking in September
Residential delinquencies fell by almost 5% in October after surging the month before, according to new “first look” figures released by Lender Processing Services.
LPS reported that at the end of October the national delinquency rate totaled 7.03%, excluding mortgages that are in foreclosure.
Compared to a year ago, delinquencies have fallen by just over 7%. In September late payments jumped by almost 8%.
A company spokesman told National Mortgage News that historically “it expects delinquencies to rise in September,” but not at the rate that they did. And when late payments rise, chances are the increase will continue into the next month. But that didn’t occur.
“So not only did the large spike not continue, but delinquencies are down at a time when, historically, we might expect them to be edging up due to seasonal effects,” he said.
LPS said 3.5 million properties are 30 or more days delinquent but not in foreclosure. An additional 1.5 million units are at least 90 days past due and not in foreclosure. Through October, there were 1.8 million properties in the foreclosure presale inventory.
The states that had the fewest delinquent loans were Montana, Wyoming, South Dakota, Alaska and North Dakota. Conversely, Florida, Mississippi, New Jersey, Nevada and New York had the highest percentage of noncurrent loans.