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Late-Stage Delinquencies Now Twice Great Recession Peak
Tuesday, October 13, 2020
Mortgage
delinquencies continued to rise in July according to CoreLogic's new loan
performance report. The company found that 6.6 percent of all mortgages were at
least 30 days past due (including those in foreclosure.) This represents a 2.8-percentage point increase in the
overall delinquency rate compared to July 2019, when it was 3.8 percent. It was, however, a lower rate than the
7.1 percent reported for June, at that point a 3.1-point annual increase. The improvement was in early stage delinquencies, those loans 30
to 59 days past due. They declined from 1.8 percent in July of last year after
spiking in April of this year to 4.2 percent. The rate of adverse delinquencies,
loans 60 to 89 days past due, rose to 1
percent from 0.6 percent a year earlier, but were down from 2.8 percent in May.
These improvements were offset by serious delinquencies, loans at least 90 days
past due, including loans in foreclosure. That category surged from 1.3 percent
in July 2019 to 4.1 percent. It is the highest serious delinquency rate since
April 2014.
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