7 Million Loans Behind On Payments
JACKSONVILLE, FL-Some 7.2 million mortgage loans are behind on payments and one million properties are now in REO status and owned by banks, according to the January 2010 Mortgage Monitor report from Lender Processing Services.
Home delinquency rates have surpassed 10%. The total foreclosure inventory is 3.2%, and the total noncurrent rate, which combines foreclosures and delinquencies, 13.3%.
The percent of "new" serious delinquencies is 4.64%, higher than any other year analyzed for the same period. Of loans that were current as of Dec. 31, 2008, by December 2009 there were 2.3 million new loans considered seriously delinquent.
Prime loans, including agency, nonagency and jumbo, have experienced deterioration at a worse pace on a relative basis than subprime, FHA and all loans as a whole. Within the prime category, loans with current unpaid principal balances between $417,000 and $600,000 have performed the worst, LPS said. LPS also indicates that 2009 loans are performing better than loans from any of the prior 5 years and have been improving as more origination months are added to the pool of loans.