Non-Current Mortgages, REO Reach 7.3m in March: LPS
More than 7.3m mortgages in the US are non-current or in REO status through March 2010, according to the Lender Processing Services (LPS) (LPS) Mortgage Monitor report. Data and analytics firm LPS reported the modest improvements in the amount of loans becoming current has been overshadowed by this large pool of non-current assets, which represent more than 12% of all active loans in the country. The volume of distressed mortgages is up 19.3% from a year ago. The amount of REO in the US as of March reached its highest levels since 2008, according to the data. Since the beginning of 2008, when LPS measured more than 675,000 REO, the volume has increased 62.2% to more than 1.09m properties. The amount of delinquencies in March decreased 10.3% from February but remains 15.7% higher than levels measured a year ago. The foreclosure rate in March also dropped 3.27% from the month before but increased 32.9% from last year. In addition, LPS reported a positive impact from the Home Affordable Modification Program (HAMP). The amount of early-state cures – meaning loans that are brought from 30-or 60-days delinquent to current status – increased, indicating a higher rate of self-cures. States with the most non-current loans were Florida, Nevada, Mississippi, Arizona, Georgia, California, Illinois, Rhode Island, New Jersey and Michigan. Across the country, 16 states showed an increase in the number of non-current loans. North Dakota, South Dakota, Alaska, Wyoming, Montana, Nebraska, Vermont, Colorado, Iowa and Minnesota had the fewest non-current loans, but hold significantly lower populations. Write to Jon Prior.