U.S. Home Loan Delinquency Rate Increases to 9.2% in May

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According to Lender Processing Services' (NYSE: LPS) May 2010 Mortgage Monitor Report released today, there was a 2.3 percent month-over-month increase in the nation's home loan delinquency rate to 9.2 percent. Additionally, early-stage delinquencies are increasing as normal seasonal improvements taper off. This report includes data as of May 31, 2010.

According to the Mortgage Monitor report, the percentage of mortgage loans in default beyond 90 days increased slightly, while both delinquency and foreclosure rates continue to remain relatively stable at historically high levels. There are currently more than 7.3 million loans currently in some stage of delinquency or REO.

The report also shows that the average number of days for a loan to move from 30-days delinquent to foreclosure sale continues to increase, and is now at an all-time high of 449 days, resulting in an increase in "shadow" foreclosure inventory.

After a two-month decline, deterioration ratios increased, with 2.5 loans rolling to a "worse" status for every one that has improved. The number of delinquent loans that "cured" to a current status declined for every stage of delinquency, except in the "greater than six months delinquent" category.  This improvement was likely the result of trial modifications made through the Home Affordable Modification Program (HAMP) that transitioned into permanent status.

Other key results from LPS' latest Mortgage Monitor report include:

• U.S. loan delinquency rate:  9.20%

• U.S. foreclosure inventory rate:  3.18%

• U.S. non-current loan rate:   12.38%

States with most non-current loans: Florida, Nevada, Mississippi, Georgia, Arizona, California, Illinois, New Jersey, Ohio and Indiana.

States with the fewest non-current loans: North Dakota, South Dakota, Wyoming, Alaska, Montana, Nebraska, Vermont, Colorado, Iowa and Minnesota.

 

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