Bad mortgage rate up in Vermont for June
According to a national rating service, Vermont's mortgage problems continue to slowly climb as the country works its through the home financing crisis. The state's foreclosure problems were never as severe as most other states and the rate is still below the national average, but Vermont is also working out problem mortgages more slowly. The state's relative rank was 19th in June after being number 15 in May (total non-current: June 9.0 percent, May 8.7 percent, see chart below). For many months Vermont had the lowest percentage of problem loans in the East, but now two states, New Hampshire and Virginia, have a lower rate.
The June Mortgage Monitor report released by Lender Processing Services (NYSE: LPS) shows that while overall mortgage prepayment activity remains stable, despite historically low rates, the federal government's Home Affordable Refinance Program (HARP) has seen considerable activity since the beginning of 2012.
"For this month's Mortgage Monitor, we looked at Fannie Mae and Freddie Mac [GSE] 30-year fixed-rate loans across a variety of loan-to-value ratios," explained Herb Blecher, senior vice president, LPS Applied Analytics. "Since the beginning of this year, high loan-to-value refinances have increased significantly. As an example, 2006 vintage GSE loans with six percent interest rates and LTV ratios between 100 and 125 percent increased from a 10 percent annualized prepayment rate at the end of 2011 to more than 40 percent in June 2012. Our data also shows that this rise in loan activity extends beyond that subsection - the same type of increase holds true across other vintages with the same characteristics."
The June data also shows that the rate of new problem loans entering the delinquency pipeline remained stable at multi-year lows; late-stage delinquencies have also shown improvement over the last year, dropping more than seven percent. On a month-over-month basis, the national delinquency rate for loans 90 or more days delinquent remained stable, but after months of tracking very closely, the rate in judicial foreclosure states is now higher than in non-judicial. The share of aged inventory is higher in judicial states as well, with nearly 50 percent of borrowers with loans 90 or more days delinquent not having made a payment in more than one year, as compared to just slightly more than 40 percent in non-judicial states. Further, nearly 60 percent of borrowers with loans in foreclosure in judicial states had not made a payment in at least two years, as of June.
As reported in LPS' First Look release, other key results from LPS' latest Mortgage Monitor report include:
Total U.S. loan delinquency rate: 7.14 %
Month-over-month change in delinquency rate: 3.4 %
Total U.S. foreclosure pre-sale inventory rate: 4.09 %
Month-over-month change in foreclosure pre-sale inventory rate: -2.0 %
States with highest percentage of non-current* loans: FL, MS, NV, NJ, IL
States with the lowest percentage of non-current* loans: MT, AK, WY, SD, ND
*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.
Note: Totals are extrapolated based on LPS Applied Analytics' loan-level database of mortgage assets.
About the Mortgage Monitor
LPS manages the nation's leading repository of loan-level residential mortgage data and performance information on nearly 40 million loans across the spectrum of credit products. The company's research experts carefully analyze this data to produce a summary supplemented by dozens of charts and graphs that reflect trend and point-in-time observations for LPS' monthly Mortgage Monitor Report. To review the full report, visit http://www.lpsvcs.com/LPSCorporateInformation/CommunicationCenter/DataReports/Pages/Mortgage-Monitor.aspx
About Lender Processing Services
Lender Processing Services (NYSE: LPS) delivers comprehensive technology solutions and services, as well as powerful data and analytics, to the nation's top mortgage lenders, servicers and investors. As a proven and trusted partner with deep client relationships, LPS offers the only end-to-end suite of solutions that provides major U.S. banks and many federal government agencies the technology and data needed to support mortgage lending and servicing operations, meet unique regulatory and compliance requirements and mitigate risk.
These integrated solutions support origination, servicing, portfolio retention and default servicing. LPS' servicing solutions include MSP, the industry's leading loan-servicing platform, which is used to service approximately 50 percent of all U.S. mortgages by dollar volume. The company also provides proprietary data and analytics for the mortgage, real estate and capital markets industries.
LPS is headquartered in Jacksonville, Fla., and employs approximately 8,000 professionals. The company is ranked on the Fortune 1000 as the 877th largest American company in 2012. For more information, please visit www.lpsvcs.com.
JACKSONVILLE, Fla. - August 9, 2012 - LPS