CoreLogic: National Mortgage Delinquencies Reach New Low in May

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IRVINE, Calif.–(BUSINESS WIRE)–CoreLogic, a leading global provider of property insights, analytics and data solutions, today released its monthly Loan Performance Report for May 2022.

For the month of May, 2.7% of all US mortgages were in some stage of delinquency (30 days or more overdue, including those in foreclosure), representing a decrease of 2 percentage points from 4.7% in May 2021.

To get a complete view of the mortgage market and the health of loan performance, CoreLogic examines all stages of delinquency. In May 2022, default and transition rates in the United States, and their year-over-year changes, were as follows:

  • Early delinquencies (30 to 59 days late): 1.1%, compared to 1.2% in May 2021.
  • Unfavorable delinquency (60 to 89 days late): 0.3%, unchanged from May 2021.
  • Serious delinquency (90 days or more past due, including loans in foreclosure): 1.3%, down from 3.2% in May 2021 and a high of 4.3% in August 2020.
  • Seizure inventory rate (the share of mortgages at some stage of the foreclosure process): 0.3%, unchanged from May 2021.
  • Transition rate (the share of mortgages that went from current to 30 days past due): 0.6%, compared to 0.7% in May 2021.

The overall mortgage default rate in the United States fell in the 14e consecutive month on an annual basis in May to the lowest level recorded since January 1999. While the national foreclosure rate remained stable year-on-year and month-on-month, the rate experienced a slight monthly increase in March of this year. However, it too remains close to a historic low. As in previous months, rising house prices and the resulting equity accumulation helped keep foreclosure rates low in May, year-over-year appreciation exceeding 20% ​​this spring.

“Early-state mortgage delinquencies are at a generational low, supported by a strong labor market,” said Molly Boesel, senior economist at CoreLogic. “Furthermore, serious delinquencies have declined to their level at the start of 2020. Although the rate of foreclosures remains low, around half of serious delinquencies come from mortgages that are six months or more in arrears. This suggests that there could be small increases in the rate of foreclosures later this year.

State and Metro Takeout:

  • In May, all states posted annual declines in their overall crime rates. The states with the largest declines were Nevada (down 3.2 percentage points), New York, New Jersey and Hawaii (all down 3.1 percentage points). The other states, including the District of Columbia, had annual delinquency rates that fell between 3 percentage points and 0.9 percentage points.

  • All US metro areas posted at least a slight annual decline in overall crime rates, with Odessa, TX (down 5.6 percentage points), Kahului-Wailuku-Lahaina, HI (down 5.1 percentage points) and Laredo, TX (down 4.8 percentage points) showing the largest declines.

The next CoreLogic Loan Performance Insights report will be released on September 13, 2022, with data for June 2022. For current housing trends and data, visit the CoreLogic Intelligence blog: www.corelogic.com/intelligence.

Methodology

Data from the CoreLogic LPI report represents reported foreclosure and delinquency activity through May 2022. The data in this report only accounts for primary liens against a property and does not include secondary liens. Delinquency, transition and foreclosure rates are measured only against homes that have an outstanding mortgage. Houses without mortgage liens are not subject to foreclosure and are therefore excluded from the analysis. CoreLogic has approximately 75% coverage of US seizure data.

Source: CoreLogic

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About CoreLogic

CoreLogic is a leading global provider of property information, analytics, and data-driven solutions. The company’s combined data from public, contributory and proprietary sources includes more than 4.5 billion records spanning over 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, location, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets and the public sector. CoreLogic delivers value to customers through unique data, analytics, workflow technology, advisory and managed services. Customers rely on CoreLogic to identify and manage growth opportunities, improve performance and mitigate risk. Based in Irvine, California, CoreLogic operates in North America, Western Europe and Asia-Pacific. For more information, please visit www.corelogic.com.

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