March showed relatively low mortgage delinquency rates, according to a recent Loan Performance Insights Report from CoreLogic. Nationally, 3.6 percent of all mortgages were in some stage of delinquency—a 0.4 percent decrease YoY.
Here’s the March YoY Breakdown:
Early-Stage Delinquencies (30 to 59 days past due): 1.9 percent YoY.
Adverse Delinquency (60 to 89 days past due): 0.6 percent, unchanged YoY.
Serious Delinquency (90 days or more past due, including loans in foreclosure): 1.2 percent, down from 1.4 percent YoY. At its lowest level for the third consecutive month since June 2000.
Foreclosure Inventory Rate (the share of mortgages in some stage of the foreclosure process): 0.4 percent, unchanged YoY.
Transition Rate (the share of mortgages that transitioned from current to 30 days past due): 1 percent, up from 0.9 percent YoY.
“The COVID-19 pandemic has shocked our economic system and led to unprecedented job loss, reducing the ability of affected families to make their monthly mortgage payments,” said Dr. Frank Nothaft, chief economist at CoreLogic. “The latest forecast from the CoreLogic Home Price Index shows prices declining in 41 states through April 2021, potentially erasing home equity and increasing foreclosure risk.”
“The first three months of 2020 reflected one of the strongest quarters for U.S. mortgage performance in recent history,” said Frank Martell, president and CEO of CoreLogic. “The build-up in home equity over the past several years, government stimulus programs, and lower borrowing costs have helped cushion homeowners from the initial financial shock of the pandemic and kept widespread delinquencies at bay during the first months of the recession. Looking ahead, we can expect a more widespread impact on U.S. delinquency rates as the economic toll of elevated unemployment and shelter-in-place orders becomes more evident.”
According to the latest Mortgage Bankers Association (MBA) Forbearance and Call Volume Survey, loans in forbearance increased to 8.53 percent as of May 31, with 4.3 million homeowners now in forbearance plans.
“The overall share of loans in forbearance increased by only 7 basis points compared to the prior week. With the job market beginning to gradually improve, more homeowners are exiting forbearance, and we are seeing declines in forbearance volume among some servicers,” said Mike Fratantoni, MBA’s senior vice president and chief economist. “However, this week’s findings did reveal divergence among servicers. The share of loans in forbearance decreased for depository servicers but continued to increase for IMBs.”
Added Fratantoni, “While servicers reported only a 1-basis-point increase in the forbearance share for GSE and Ginnie Mae loans, the increase for private-label securities and portfolio loans rose to over 10 percent, which is higher than the rate on GSE loans.”
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