52
SOMETIMES,
IT'S GOOD
TO BE A
FOLLOWER.
Follow MReport on social media to put the latest
mortgage banking news, stories, strategies, and
insights at the touch of your fingertips.
MReport @TheMReportNews The MReport
FORECLOSURES,
AFTER THE
STORM
Delinquency is down while equity is up,
according to the latest Loan Performance
Insights report from CoreLogic. According
to the report, 4.1% of mortgages were 30
days or more delinquent as of December
2018, a 1.2% decline from December 2017's
5.3%.
Despite the decrease, recent natural
disasters such as hurricanes have left states
such as North Carolina, Florida, and
Georgia behind. According to CoreLogic,
10 out of the 12 metro areas to experience
increases in serious delinquency, or loans 90
days or more past due, were located in the
Southeast, in areas such as Panama City,
Florida.
"On a national basis, income and home-
price growth continue to support strong
loan performance," said Frank Martell,
CoreLogic President and CEO. "Although
things look good across most of the nation,
areas that were impacted by hurricanes and
other natural hazards are experiencing a
sharp increase in the numbers of mortgages
moving into 60-day delinquency or worse.
One specific example is Panama City,
Florida, which was devastated by Hurricane
Michael, where 60-day delinquencies rose to
3.5% in December."
On a state by state basis, every state
in the United States except one saw
serious delinquency decrease. North
Dakota experienced no change in serious
delinquency rates. Additionally, the
30-plus delinquency rate is currently at a
10-year low. e share of mortgages that
transitioned from current to 30-days past
due was 0.9% in December 2018, down from
1.2% in December 2017.
Meanwhile, while delinquency has fallen,
home equity has gone up. Frank Nothaft,
Chief Economist of CoreLogic, noted that
homeowners saw a $9,700 increase in their
home equity in 2018. Nothaft noted the
increases in equity may impact foreclosure
and delinquency rates.
"With additional 'skin in the game,'
rising equity reduces the chances of a
foreclosure, helping to push the foreclosure
rate down to its lowest level since at least
2000," Nothaft said.
