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Real Estate

Loan Performance Insights

Source: https://www.corelogic.com/intelligence/loan-performance-insights/

Introduction

The CoreLogic Loan Performance Insights report features an interactive view of our mortgage performance analysis through October 2021.

Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To more comprehensively monitor mortgage performance, CoreLogic examines all stages of delinquency as well as transition rates that indicate the percent of mortgages moving from one stage of delinquency to the next.

The report is published monthly with coverage at the national, state and Core Based Statistical Area (CBSA)/Metro level and includes transition rates between states of delinquency and separate breakouts for 120+ day delinquency.

“Economic recovery and loan modification have helped reduce the number of loans that were in serious delinquency by just over one million from the August 2021 peak. Nonetheless, there were about one-half million more loans in serious delinquency in October than at the start of the pandemic in March 2020. ”

– Dr. Frank Nothaft
Chief Economist for CoreLogic

30 Days or More Delinquent – National

In October 2021, 3.8% of mortgages were delinquent by at least 30 days or more including those in foreclosure.

This represents a 2.3-percentage point decrease in the overall delinquency rate compared with October 2020.

Improving Employment

After over a year of trying conditions for borrowers, unemployment rates mark an improvement as data from the Bureau of Labor Statistics shows that by October 2021 an estimated 82% of the jobs lost in March and April 2020 were recovered, which translates to roughly 18.2 million Americans back at work. The combination of significant job market improvement, home equity increases and federal assistance programs have helped overall delinquency rates decline to 3.8%, which is close to the October 2019 rate of 3.7%.

“Improving economic security and the benefits of disciplined underwriting practices over the past decade are helping reduce or avoid mortgage delinquencies. We expect to see delinquency trend down over the balance of this year as the economy continues to rebound from the pandemic, employment grows and high levels of fiscal and monetary stimulus continues.”

– Frank Martell
President and CEO of CoreLogic

Loan Performance – National

CoreLogic examines all stages of delinquency to more comprehensively monitor mortgage performance.

The nation’s overall delinquency rate for October was 3.8%. The rate for early-stage delinquencies – defined as 30 to 59 days past due – was 1.2% in October 2021, down from 1.4% in October 2020. The share of mortgages 60 to 89 days past due was 0.3%, down from 0.6% in October 2020. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 2.2%, down from 4.1% in October 2020.

As of October 2021, the foreclosure inventory rate was 0.2%, down from 0.3% in October 2020.

Transition Rates – National

CoreLogic examines all stages of delinquency as well as transition rates that indicate the percent of mortgages moving from one stage of delinquency to the next.

The share of mortgages that transitioned from current to 30-days past due was 0.7%, down from 0.8% in October 2020.

Overall Delinquency – State

Overall delinquency is defined as 30-days or more past due, including those in foreclosure.

In October 2021, all states logged year over year declines in their overall delinquency rate. The states with the largest declines were: Nevada (down 3.7 percentage points); Hawaii (down 3.6 percentage points); and Florida (down 3.5 percentage points).

Serious Delinquency – Metropolitan Areas

Serious delinquency is defined as 90 days or more past due including loans in foreclosure.

There were 0 metropolitan areas where the Serious Delinquency Rate increased.

There were 384 metropolitan areas where the Serious Delinquency Rate remained the same or decreased.

To learn more about the data behind this article and what CoreLogic has to offer, visit https://www.corelogic.com/.

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Data is changing the speed of business. Investors, Corporations, and Governments are buying new, differentiated data to gain visibility make better decisions. Don't fall behind. Let us help.

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Consumer Edge Insight offers exclusive street-ready big-data products engineered for alpha generation by Data Science Teams & Portfolio Managers alike. CEI offers a number of alternative data products including CE Transact, our leading U.S. credit/debit card insight product (15M cards). CE Transact products provide aggregated revenue signal, deep fundamental cohort analysis and/or granular transaction-level data feeds with unparalleled metadata. Advantages: shortened latency (T+4), better panel representativeness (9M+ daily panel), and metadata integration such as demographics (at cardholder level). All data is cleaned with CEs Advanced Tagging System.