New Delinquencies Rose In May

eterioration worsened in May, according to Lender Processing Services Inc.'s (LPS) [link=][u]Monthly Mortgage Monitor[/u][/link]. Further, report data confirm that servicers are reluctant to foreclose, as foreclosure starts increased but foreclosure sales remained low, despite the expiration of mortatoria. New delinquencies rose across all product types, and the current-to-30 roll rate was the fourth highest on record, following only September 2007, August 2008 and November 2008, the report says. The spread between loans that are improving and loans that are deteriorating grew to the widest it's been since November 2008. The deterioration ratio, which compares deteriorating loans against improving loans, stood at 277%. The highest deterioration rates occurred in Nevada, Arizona, Hawaii and California. Prime products (e.g., non agency, jumbo and agency) have had highest deterioration rates since January 2008, with the biggest increase in deterioration coming in the last six months, LPS notes. The LPS report also shows that servicers are targeting loss mitigation action on those loans that require the most urgent attention. Almost 90% of modifications happened on loans that are at least 90 days past due but that have not been referred to an attorney for foreclosure. The percentage of modifications for 30- and 60-day buckets has remained fairly static since December 2008. On the origination side of things, the 2009 vintage is holding up well, with lower early-stage delinquency rates than the past five years. Recent originations are characterized by good credit scores and low loan-to-value ratios. Defaults on 2008-vintage loans have shot up at a fast rate in the last six months. SOUR


Please enter your comment!
Please enter your name here