Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Economic News

Mortgage delinquencies fell 40% in 2011

Foreclosure activity

According to a new report by Lender Processing Services (LPS), mortgage delinquencies dropped 3.7 percent in December, down 40 percent from December 2010 levels, with the total U.S. loan delinquency rate now resting at 8.15 percent, the same as the month prior. The total foreclosure pre-sale inventory rate was 4.11 percent, down 1.3 percent from November.

LPS reports the top reasons for delinquencies falling are moratoria, process reviews and loss mitigation efforts, while delinquencies were down 25 percent from their peak in January 2010. New originations were down almost 30 percent for the year.

December origination data also shows that recent prepayment activity – a key indicator of mortgage refinances – has remained strong, with 2008-09 originations, high credit score borrowers and government-backed loans having benefited the most from recent, historically low interest rates.

LPS reports that half of loans in foreclosure in judicial states have not made a payment in two years, while 28 percent of loans in foreclosure in nonjudicial states have not made a payment in two years. Foreclosure sale rates in nonjudicial states are approximately four times that of judicial foreclosure states.

Advertisement. Scroll to continue reading.

Florida, Illinois, Mississippi, Nevada, and New Jersey had the highest percentage of delinquent loans in December, while Montana, Wyoming, South Dakota, Alaska and North Dakota had the lowest percentage of delinquent loans.

As the backlog begins clearing after being caused by the robosigning debacle wherin banks illegally filed foreclosures on homeowners with no human review of any documents, not to mention other abuses, many predict could cause up to a 25 percent increase in foreclosure filings in 2012. The volume of distressed homes on the market has certainly been limited as processing has slowed.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.


Leave a Reply

Your email address will not be published. Required fields are marked *


American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.



Business News

(Business News) When a well known Realtor and his loan officer wife get rich off of $50 million in falsified loans and wash profits...

Housing News

Although the average contract interest rate fell for many types of loans, mortgage application volume fell - the MBA points out that Columbus Day...

Housing News

One Bank of America employee has been charged with a scheme that put over $1 million in his pocket.

Housing News

If you follow the money at several major foreclosure mill firms, the abuses being discovered at various levels are astounding. One state is investigating,...

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.