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.