LPS report: Foreclosure inventory increased 10% in 2010
The nation's foreclosure inventory increased 10% in 2010 as more delinquent mortgage loans entered the foreclosure process, Lender Processing Services said in its latest LPS Mortgage Monitor Report this week. At the same time, the mortgage analytics firm says delinquency rates on all mortgage products fell 18% in 2010 as the foreclosure process ended the life-cycle of many distressed loans. Tepid foreclosure sales is keeping inventory high, LPS said, along with delays due to foreclosure moratoria and process reviews that cut the number of distressed properties in the real-estate owned segment of the market. About 30% of the foreclosure starts in 2010 impacted homes that had previously been in foreclosure, the report added. The report did offer a few tidbits of positive news from last year. For one, seasonal trends reversed and newly delinquent loan rates are improving. LPS also said refinance activity remained strong and loan originations in 2010 hit several high points, with government-supported transactions making up 95% of the originations. Write to Kerri Panchuk.