Mortgage Delinquencies Down 10% in 2013, Vary by State

Mortgage delinquencies decline

In 2013 Mortgage delinquencies declined 10% on a year-over-year basis despite a slight uptick in December. (According to Black Knight Financial Services’ Mortgage Monitor data). But, they are varying widely by state.

Mortgage lates were up 0.26% in December 2013 compared to the previous month. There is a total U.S. loan delinquency rate of 6.47% for loans that are 30 or more days past due, but not in foreclosure.

Notwithstanding the small upstick in credit lates and delinquencies to close out the year, the overall trend for 2013 was one of improvement, down 9.85% from 2012. (Black Knight Financial Services) notes, with the lowest level of “seriously delinquent” inventory since 2008.

As of the end of December, there were 3.24 million properties that were 30 or more days past due, not in foreclosure. Nearly 1.3 million properties were “seriously delinquent” at 90 or more days past due. Approximately 4.5 million properties were 30 or more days delinquent or in foreclosure.

Mississippi, New Jersey, Florida, New York, and Louisiana are the states with the highest percent of non-current loans. (According to December 2013 Mortgage Monitor). Conversely, the five states with the lost percentage of non-current loans are Montana, Colorado, Alaska, South Dakota, and North Dakota.

Black Knight Financial Services’ Data and Analytics division generates month-end mortgage performance statistics. This is derived from its loan-level database that represents approximately 70% of the overall mortgage market.

The Financial Assessment expected in coming months for the Home Equity Conversion Mortgage program may include information about past delinquencies, among other relevant financial history. This indicates a borrower’s willingness or capacity to pay loan obligations. HUD recently announced it will release guidance on the Financial Assessment in February.

By Alyssa Gerace

January 29th, 2014.