Delinquencies Are up Slightly, Foreclosures Greatly
Jacksonville, FL-Total mortgage delinquencies in April rose slightly to 8.1%, with a year-over-year increase of 43%, and the nation's foreclosure rate for the month was 2.7%, representing a year-over-year increase of 90.5%, according to Lender Processing Services here.
In the technology provider's Monthly Monitor for May, LPS found positive news in foreclosure starts, which declined in April from March's spike, although April's foreclosure start rates remains higher than all other prior months.
In a vintage delinquency analysis, the report shows that recent vintage loans are showing a clear and steady trend of improvement through reduced delinquency rates, and that 2009 vintage loans have a lower default rate than 2004-2008 vintage loans. In addition, the May report indicates a steady increase in the number of loan modifications involving reductions in interest rates or unpaid principal balances. The analysis of loans six months post-modification reveals that UPB reductions lower the redefault rate by 25%.
The national average of loans in some stage of delinquency or foreclosure is 10.8%, the report said.