The October Mortgage Monitor report released by Lender Processing Services Inc. (LPS) shows record-high rates for non-current loans, as well as an upswing in loan production volume over the previous year.
The report, which covers data through the end of September, found that the total U.S. non-current loan rate (a metric that combines foreclosures and delinquencies as a percent of active loans) was 12.49%, with the total loan delinquency rate at 9.37%.
Foreclosure inventories continued their upward climb. The nation's September 2009 foreclosure rate stood at 3.12% – a month-over-month increase of 2.6% and a year-over-year increase of 88.9%. Among individual states, Florida posted the most troubling results, with 10.4% of loans in foreclosure and more than 22% of loans reported as non-current.Â Â Â
LPS' October Mortgage Monitor also cites large ‘shadow’ foreclosure and real estate owned property inventories. The number of loans deteriorating further into delinquent status is now more than twice the number of foreclosure starts, indicating another major wave of troubled loans in an already clogged loan pipeline.
Nearly one-third of foreclosures remain in pre-sale status after 12 months – twice as many as the previous year. The six-month average deterioration ratio has risen the past two months to 300%, showing that for every loan that improves in status, three more deteriorate further.
Positive results included higher loan production totals for 2009 compared to the same time frame in 2008. Year-to-date 2009 loan totals were about 2.03 million (28% of which were Federal Housing Administration (FHA) loans) versus approximately 1.90 million (with 16% FHA) for the same period in 2008.
The states with the most non-current loans were Florida, Nevada, Mississippi, Arizona, Georgia, California, Michigan, Indiana, Ohio and Illinois. North Dakota, South Dakota, Wyoming, Alaska, Montana, Nebraska, Vermont, Colorado, Oregon and Washington had the fewest non-current loans.
SOURCE: Lender Processing Services