Mortgage delinquency rate increased in November

Mortgage delinquency rate on the rise

According to Lender Processing Services’ (LPS’) First Look report for November, the mortgage delinquency rate rose in November to 7.12 percent, up from 7.03 percent in October, but as with most housing news these days, there is a silver lining – the total delinquency rate is down 9.06 percent from November 2011. Additionally, the percent of loans in the foreclosure process declined further in November and are their lowest level since 2009.

Actual homes in the foreclosure process fell to 3.51 percent from 3.61 percent in October, and the number of properties in the foreclosure process is down 16.42 percent compared to November 2011.

While the mortgage delinquency rate is improving after housing got the wind knocked out of it, it should be noted that the “normal” delinquency rate is between 4.5 percent and 5.0 percent, so it remains problematic at rates much higher than that today.

The total number of properties that are 30 or more days delinquent or in foreclosure sits at 5,350,000 for the end of November. Loans 30 or more days past due but not in foreclosure total 3,583,000, while properties over 90 days delinquent but not in foreclosure total 1,584,000. In November, LPS reports 1,767,000 homes in the foreclosure process.

Although the percent and volume of loans over 90 days delinquent, and those in the foreclosure process is still high, the number of mortgage loans in the actual foreclosure process is declining.

Florida, New Jersey, Mississippi, Nevada, and New York have the highest percentage of non-current loans, while Montana, Wyoming, South Dakota, Alaska, and North Dakota have the lowest percentage of non-current loans. These ten states have been at the top and bottom of the list for a very extended period, with no signs of shift in the near future.

LPS’ First Look report is derived from its loan-level database representing approximately 70 percent of the overall market.