The August Mortgage Monitor report released by Lender Processing Services Inc. (LPS) shows that foreclosure starts continue to accelerate, with the government-sponsored enterprises displaying more aggressive timelines on early-stage delinquencies. LPS data also show refinance activity is picking up again as prepayment rates have been steadily increasing over the last two months, and new originations hit 2010 highs.
According to LPS, there had been more than 2 million foreclosure starts at the end of August. While delinquencies during that same time period dropped 5.1% as compared to a year ago, in the context of ‘normal market conditions,’ delinquencies remain at historically high levels.
LPS added that agency foreclosure starts declined slightly in August, although portfolio foreclosure starts accelerated. In January 2009, LPS found the percentage of seriously delinquent loans that were current six months prior peaked at 2.925%; in August 2010, that rate was 1.65%.
The report also shows that approximately 1.01 million loans that were current at the beginning of January are at least 60 days delinquent or in foreclosure as of the end of August – a month-over-month increase of 115,000 loans.
The full report is available online.
SOURCE: Lender Processing Services