LPS: Delinquency Rates Hit All-Time Highs, But Pace Is Slowing

While delinquency rates in the U.S. have risen to historic highs, the pace of deterioration has slowed, according to the February 2010 Mortgage Monitor report by Lender Processing Services Inc. in Jacksonville, Fla. Nearly 7.5 million loans are in some stage of delinquency or foreclosure, with an additional 1 million properties in REO or post-sale foreclosure. Approximately 2.5 million loans that were current on Jan. 1, 2009, were 60 or more days delinquent (including foreclosures) as of Jan. 31, 2010. Despite extraordinary loss mitigation efforts that have resulted in the execution of approximately 2 million loan modifications, including the federal government's Home Affordable Modification Program trial periods, LPS said the number of new delinquencies since Jan. 1, 2009, still exceeds this number by 25%. More than 31% of loans that have been delinquent for six months are not yet in foreclosure, while 22.8% of loans delinquent for 12 months have not been moved to foreclosure status (up from 9% in 2008). While the total loan delinquency rate was 10.2%, the foreclosure inventory rate was 3.3%. The total noncurrent loan rate was 13.5%, and states with the most noncurrent loans included Florida, Nevada, Mississippi, Arizona, Georgia, California, Indiana, Illinois, Michigan and Ohio. States with fewest noncurrent loans included North Dakota, South Dakota, Alaska, Wyoming, Montana, Nebraska, Vermont, Colorado, Oregon and Washington.