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Extremely Delinquent Mortgagors Struggling to Recover

May 13, 2022

Extremely Delinquent Mortgagors Struggling to Recover

The nation’s delinquency rate in the U.S. in Feb 2022 hit its lowest recorded point since January 1999 according to CoreLogic.  In February 2022 it is report that some of 3.2% of all mortgages in the country were in some stage of delinquency.  This is defined as being at least 30 days or more past due.  As compared to the same period a year prior it was at 5.7%.  According to Loan Performance Insights Report as of February 2022 the U.S. delinquency and transition rates and year-over-year changes are shown below:

  • Early-Stage Delinquencies (30 to 59 days past due): 1.3%, down from 1.5% in February 2021. 
  • Adverse Delinquency (60 to 89 days past due): 0.3%, down from 0.5% in February 2021. 
  • Serious Delinquency (90 days or more past due, including loans in foreclosure): 1.6%, down from 3.7% in February 2021 and a high of 4.3% in August 2020. 
  • Foreclosure Inventory Rate (the share of mortgages in some stage of the foreclosure process): 0.2%, down from 0.3% in February 2021. This remains the lowest foreclosure rate recorded since at least January 1999. 
  • Transition Rate (the share of mortgages that transitioned from current to 30 days past due): 0.8%, down from 0.9% in February 2021. 

The drop marks the eleventh consecutive month of year-over-year declines.  Some factors that played into this was the beginning of the typically busier spring season with home prices rising almost 21% since March 2021.  It is predicated that the national appreciation to stay around 6% by March 2023 per CoreLogic.   While only one-half of borrowers who are seriously delinquent, meaning they have missed 6 payments or more, this number is double what is was prior to the pandemic.

Source: DSNews

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