Mortgage Delinquencies Jumped in September

The rate of delinquent mortgage rose 7.7 percent in September from the previous month, according to Lender Processing Services, the biggest increase in four years.

The LPS September Mortgage Monitor report found that the current U.S. mortgage delinquency rate is now 7.4 percent, and while September typically registers a rise in delinquencies, this year it was more dramatic.

Even so, LPS Applied Analytics Senior Vice President Herb Blecher pointed out that the delinquency rate have been getting better for many months.

“September’s increase in the delinquency rate was indeed significant, but the overall trend is still one of improvement,” Blecher said in a press release. “Despite the monthly jump, delinquencies are down 30 percent from their January 2010 peak, and our analysis revealed some interesting factors related to the spike. Of course,¬†one month’s data does not indicate a trend. We will be monitoring these factors over the coming months to see how the situation develops.”

Blecher said it was surprising that the delinquency rate rose across the country when many other measurements were still falling.

“Virtually all transactional or operational metrics we observed declined in volume for the month; foreclosure starts, foreclosure sales, delinquent cures and loan prepayments all dropped from their August levels. It is important to note that we also saw the percentage of re-defaulting modifications contributing to the delinquency rate actually declined from the month prior.”

LPS did not volunteer any reasons why the late mortgages rate might have jumped in September.

Florida led the nation in lnon-current mortgages, followed by Mississippi, New Jersey, Nevada and Louisiana. At the other end, Montana had the lowest delinquency rate, with Alaska, South Dakota, Wyoming and North Dakota rounding out the lowest five.

In addition to the late mortgage increase, the LPS Mortgage Monitor reported that there are currently 3.84 percent of all homes in the foreclosure process.

Ads By Google

Trackback URI | Comments RSS

Leave a Reply

Privacy Policy