LPS Reports Broad-Based Spike in New Delinquencies in June


This is really pretty good news even though it doesn’t sound like it. Please read the article below and let me know what you think.

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In June, over 700,000 loans that were once current became newly delinquent, leading to a near 10 percent month-over-month spike in the national delinquency rate, according to a report from Lender Processing Services (LPS).

Though, the sudden uptick in delinquencies is actually not surprising when looking at previous trends, LPS found.

“June’s increase in delinquencies is representative of a documented seasonal phenomenon,” said Herb Blecher, SVP of LPS Applied Analytics. “Over the last 18 years, similar changes occurred in June for all but four of those years.”

When examining the increase on a quarterly basis, Blecher also noted the rise was actually moderate compared to previous years.

“Since 1995, delinquency rates have risen from Q1 to Q2 in all but two years, with an average 7 percent increase. By comparison, the 2013 Q1 to Q2 increase was just 1.34 percent,” he explained.

The month-over-month upswing in early delinquencies was actually seen across all 50 states, with Utah and Colorado experiencing increases averaging 30 and 32 percent, respectively.

The high number of new delinquencies also impacted cures for early delinquencies, which fell to a five-year low.

Meanwhile, serious delinquencies still trended downward and hovered near pre-crisis lows at 0.71 percent as of June.

Foreclosure inventory decreased as well, falling to 2.9 percent, down by 3.9 percent from May and 28.4 percent from a year ago.

In judicial states, the foreclosure inventory rate was much higher, at 4.91 percent, but sits 26 percent below the peak level. Non-judicial states averaged a foreclosure inventory rate of just 1.50 percent and were 50 percent below their peak.

To read the complete article – please use the link below.

New Delinquencies in June

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