August 5, 2021

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Mortgage News

Early State Delinquencies Drop Below Pre-COVID Levels

The nation’s mortgage The crime rate is approaching pre-pandemic levels when early-stage failures improve. CoreLogic says 4.9 percent of all mortgages were 30 days or more past due as of March this year, including foreclosure loans. This is the lowest rate since March 2021, the month the pandemic hit, and the rate was 3.6 percent.

The company notes: “March 2021 marked a critical time in the United States – the one-year anniversary of the pandemic outbreak, the third round and the disbursement of government economic controls and the expansion of deferral programs. Some of these factors helped mortgage borrowers stay up to date with their loans and resulted in the lowest national crime rate in a year.

“Also, there is convergence of these financial buffers enabled many homeowners to reduce other debts. A recent CoreLogic survey of current mortgage holders shows that in addition to 89 percent of those polled that they have stopped paying their mortgage payments, nearly 70 percent also have credit card debt – only 15 percent of whom report having made payments in the past year. “

Early-stage defaults, loans that are 30 to 59 days overdue, were 1.0 percent in March versus 1.9 percent in March 2020. In the next phase, loans 60 to 89 days overdue, the rate was 0, 4 percent compared to 0.6 percent in March earlier.

The major default rate, loans that are 90 days or more in arrears, including those in foreclosure, is the bucket that still reflects last year’s financial hardship. That rate is now 3.5 percent, compared to 1.2 percent in March 2020. The foreclosure inventory rate for loans in the foreclosure process remains low due to the ongoing foreclosure moratoria. That rate was 0.3 percent, a decrease of 0.1 points on an annualized basis.

The transition rate, the proportion of mortgages that were overdue from current to 30 days in the course of the month, was 0.4 percent in March. In March 2020 it was 1 percent.

Failure rates have increased in every state and in most metropolitan areas. The states hardest hit were Hawaii and Nevada, with an annual increase of more than 3 points, and Odessa and Midland, Texas, of 7.9 and 6.1 points, respectively.