Mortgage delinquencies continued their decline in October and are now nearly 30% off their January 2010 peak, according to the latest Mortgage Monitor issued by Lender Processing Services (LPS). Meanwhile, foreclosure inventories are on the rise, reaching an all-time high at the end of October of 4.29% of all active mortgages.
According to Jacksonville, Fla.-based LPS, the total U.S. loan delinquency rate is 7.93%, and the average days delinquent for loans in foreclosure set a new record of 631 days since last payment. The average days delinquent for loans 90 or more days past due but not yet in foreclosure decreased for the second consecutive month.
LPS adds that its October data showed that mortgage originations were on the rise, reaching levels not seen since mid-2010. Mortgage prepayment rates have also spiked, as much of the new origination is related to borrower refinancing; loans originated in 2009 and later are the primary drivers of the increase. Nearly nine out of every 10 new mortgages were either a government-sponsored enterprise or Federal Housing Administration origination.
The states with the highest percentage of non-current loans were Florida, Mississippi, Nevada, New Jersey and Illinois. The states with the lowest percentage of non-current loans were North Dakota, Alaska, South Dakota, Wyoming and Montana.