Closing Complex Loans Faster With a Digitized Client Workflow

Join us for a discussion on changes in market demographics, suppliers and how focusing on customer experience and a few simple steps during the mortgage loan process can close deals 3x faster.

Brokers, Here’s Everything You Need to Know About Rocket Pro TPO

Want to stay up to date with the latest on what Rocket Pro TPO is offering its broker partners? Check out our TPO hub for updates and more.

Home appraisal’s ugly history and uncertain future

This is Part I of a deep dive into the home appraisal industry. Today we explore the origins of the appraisal industry and its current lack of diversity.

Loan quality lessons learned from 2020

HousingWire recently spoke with Trevor Gauthier, CEO of ACES Quality Management, about the effects of 2020 on loan quality and what lenders should expect regarding loan quality and risk management this year.

Mortgage

Delinquency rate hits lowest level since 2008

State delinquencies improve across the board

The market is continuing its steady recovery, with the delinquency rate for mortgage loans on one-to-four-unit residential properties falling to 6.96% in the second quarter, the lowest level since mid-2008, the Mortgage Bankers Association said.

The delinquency rate includes loans that are at least one payment past due; however, it does not include loans in the process of foreclosure.  

Also reaching the lowest level since the first quarter of 2007, the percentage of loans on which foreclosure actions were started during the second quarter decreased to 0.64% from 0.70%.

Meanwhile, the serious delinquency rate, which includes loans that are 90+ days past due, sank to 5.8%, a drop of 51 basis points from the first quarter.

The combined percentage of loans at least one payment past due or in foreclosure was at its lowest level in five years, decreasing to 10.13%, 17 basis points lower than last quarter and 149 basis points lower than the same quarter a year ago.

“For most of the country, delinquencies and foreclosures have returned to more normal historical levels. Most states are at or only slightly above longer-term averages, and some of the worst-hit states are showing improvement,” the MBA stated.  

As a whole, the delinquency rate dropped for all loan types except FHA loans.

The FHA 30-day delinquency rate increased by 26 basis points, while the rate for prime, fixed loans and prime ARM loans fell 23 basis points to 3.54% and 87 basis points to 6.75%, respectively.

Additionally, the foreclosure inventory rate plummeted to 3.33%, with the foreclosure inventory rate for prime fixed loans dropping 27 basis points to 1.71%. 

Looking at individual states, foreclosure starts fell or were unchanged in 43 states and the foreclosure inventory rate either improved or was unchanged in 45 states, Jay Brinkmann, MBA’s chief economist and senior vice president of research and economics, said.  

“Both judicial systems and states with nonjudicial systems declined to recent lows, with judicial states seeing the lowest foreclosure inventory since 2009 and nonjudicial states seeing the lowest foreclosure inventory since 2007,” Brinkmann said.

“While overall economic growth and jobs creation have been less than robust, the improvements have not been consistent across the country or all sectors,” he added.  “The result is that those states with the weakest economic growth and the most sclerotic foreclosure systems have seen the slowest improvements in delinquency and foreclosure rates.” 

Most Popular Articles

The housing market outsmarted the foreclosure crisis

This isn’t 2008. A bevy of loss mitigation waterfalls, forbearance safety nets and an abundance of equity gave Americans a fighting chance when the foreclosure crisis finally sunsets. HW+ Premium Content

Jun 18, 2021 By

Latest Articles

Existing home sales dip downwards for fourth month

Existing home sales fell for the fourth consecutive month in May, down .9% from April to 5.8 million, the National Association of Realtors reported on Tuesday.

Jun 22, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please