The volume of loans moving to REO continued to drop in November as moratoria further delayed foreclosure sales, according to the latest Mortgage Monitor report from Lender Processing Services (LPS). While the 90-plus delinquency category has steadily declined, the number of mortgages moving to seriously delinquent status beyond 90 days far outpaced the number of foreclosure starts. Nearly 2.2 million loans are 90 days or more delinquent but not yet in foreclosure, according to LPS, a Jacksonville, Fla.-based mortgage technology and analytics firm. Foreclosure inventories also continued to rise for the fifth straight month as delinquent accounts are referred for foreclosure, but the sale of foreclosure properties declined. When compared to January 2008 levels, the foreclosure inventory of jumbo prime loans is nearly seven times higher; the inventory of agency prime loans is nearly six times higher; and the foreclosure inventory of option adjustable-rate mortgage loans is approaching five times the inventory in January 2008. The report also shows that one-third of loans that are 90 days or more delinquent have not made a payment in a year; however, the number of new problem loans declined nearly 5.4% from October, which is opposite of the seasonality trend that typically impacts new delinquencies this time of year. Self-cures for loans one to two months delinquent increased in November to a six-month high. LPS said 261,153 loans were referred to foreclosure, which represents a 0.7% month-over-month decline. The total number of delinquent loans is nearly 2.1 times historical averages. Foreclosure inventory is currently at 7.7 times historical averages. The report also contained the following results:

• Total U.S. loan delinquency rate:  9.02%

• Total U.S. foreclosure inventory rate:  4.08%

• Total U.S. noncurrent loan rate:  13.10%

• States with most noncurrent loans:  Florida, Nevada, Mississippi, Georgia, New Jersey

• States with fewest noncurrent loans:  North Dakota, South Dakota, Alaska, Wyoming, Montana

Noncurrent totals combine foreclosures and delinquencies as a percent of active loans in that state. Click here to see the full report. Write to Kerry Curry.