Problem Loan Rates Hit Six-Year Low


JACKSONVILLE, Fla. — May 6, 2013  — The March Mortgage Monitor report released by Lender Processing Services found that new problem loan rates (seriously delinquent mortgages that were current six months ago) have fallen below 1 percent for the first time since 2007. At 0.84 percent, the March new problem loan rate is approaching pre-crisis levels, and nearing the conditions of 2000-2004 when the rate averaged 0.55 percent. However, as LPS Applied Analytics Senior Vice President Herb Blecher explained, a borrower’s equity position is still a key indicator of his or her propensity to default.

As reported in LPS’ First Look release, other key results from LPS’ latest Mortgage Monitor report include:

Total U.S. loan delinquency rate:                             6.59%

Month-over-month change in delinquency rate:              -3.13%

Total U.S. foreclosure presale inventory rate:                    3.37%

Month-over-month change in foreclosure pre-sale inventory rate:         -0.41%

States with highest percentage of non-current* loans:                  FL, NJ, MS, NV, NY

States with the lowest percentage of non-current* loans:          MT, AK, WY, SD, ND

*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.

Totals are extrapolated based on LPS Applied Analytics’ loan-level database of mortgage assets.

View the Mortgage Monitor Snapshot, LPS’ new video version of the Mortgage Monitor here.

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