The national mortgage delinquency rate rose 7.7% from August to September, making it the largest monthly late payment increase in four years, according to Lender Processing Services.
LPS made that conclusion in the company's September Mortgage Monitor report. The data analytics firm punctuated its research with a note saying the recent rise in delinquencies still remains 30% lower than peak levels established in January 2010.
For the same month, foreclosure starts, foreclosure sales, delinquency cures and loan prepayments fell from August levels.
On a brighter note, the percentage of home loans re-defaulting after going through a loan modification made up a smaller percentage of the overall delinquency rate in September.
Originations during the same period soared as more homeowners refinanced through the government's Home Affordable Refinancing Program.
High loan-to-value HARP originations represented a quarter of all August originations studied by LPS in its monthly mortgage monitor. Originations overall rose 13.2% from August and 42.1% over last year.
U.S. states with the highest percent of non-current loans included Florida, Mississippi, New Jersey, Nevada and Louisiana. States with the lowest percentage of non-current loans included Montana, Alaska, South Dakota, Wyoming and North Dakota.