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DS News November 2020

DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.

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7 Journal Compiled by the DS News Staff TA K E A L O O K I N S I D E T H E N U M B E R S DATA BITS Source: U.S. Bureau of Labor Statistics, State unemployment rates, seasonally adjusted, for September 2020 DELINQUENCY RATE DOUBLES GREAT RECESSION PEAK In July 2020, 6.6% of mortgages in the U.S. were delinquent by 30 days or more including those in foreclosure; this represents a 2.8-per- centage point increase in the overall delinquen- cy rate compared to July 2019. e CoreLogic Loan Performance Insights report measured mortgage performance through July 2020. "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 percentage of mortgages moving from one stage of delinquency to the next," the company noted. To that end, it broke down delinquencies by stages: » 30-59 days (early delinquent) 1.5% in July 2020, down from 1.8% last July » 60 to 89 days: up 1% from 0.6% in July 2019 » 90+ days (seriously delinquent): 4.1%, up from 1.3% in July 2019. "is is the highest serious delinquency rate since April 2014," CoreLogic reported. » Mortgages that transitioned from current to 30-days past due: 0.8% in July 2020, unchanged from July 2019. "e transition rate has slowed since April 2020," reports CoreLogic, "when it peaked at 3.4%." Furthermore, "Four months into the pandemic, the 120-day delinquency rate for July spiked to 1.4%," said Dr. Frank Nothaft, Chief Economist at CoreLogic. "is was the highest rate in more than 21 years and double the December 2009 Great Recession peak. e spike in delinquency was all the more stunning given the generational low of 0.1% in March." CoreLogic reports that, despite home values (measured by the CoreLogic Home Price Index) rising at an accelerated rate, "unemployment levels in hard-hit areas remain stubbornly high, leaving some borrowers house-rich but cash poor." "Despite the slow reopening of several sectors of the economy, recovery for other industries like entertainment, tourism, oil, and gas have a more uncertain outlook for the remainder of 2020. With persistent job market and income instability, Americans continue to tap into savings to stay current on their home loans. But as savings run out, borrowers could be pushed further down the delinquency funnel." COVID-19 hotspots continue to suffer the most economic fallout, CoreLogic reports, with Nevada, New Jersey, New York, Hawaii, and Florida topping the states with the highest overall delinquencies. I N S I D E T H E J O U R N A L | I N F O S T R E A M | T H E D I G I TA L E D G E | M O V E R S & S H A K E R S A look at facts you didn't know you couldn't live without. In Louisiana, Mississippi, and Alabama, the insured property wind losses from Hurricane Zeta are estimated at between 2.2B and 3.5B. Fannie Mae and Freddie Mac reported 568.3B and 429.4B, respectively, in annual loans on single-family, owner- occupied housing. 1. NEBRASKA 3.5% 2. SOUTH DAKOTA 4.1% 3. VERMONT 4.2% 4. NORTH DAKOTA 4.4% 5. IOWA 4.7% 6. MISSOURI 4.9% 7. UTAH 5.0% 8. SOUTH CAROLINA 5.1% 9. OKLAHOMA/MONTANA (TIE) 5.3% 10. WISCONSIN 5.4% 10 STATES WITH LOWEST UNEMPLOYMENT RATES 1. HAWAII 15.1% 2. NEVADA 12.6% 3. CALIFORNIA 11% 4. RHODE ISLAND 10.5% 5. ILLINOIS 10.2% 6. NEW YORK 9.7% 7. MASSACHUSETTS 9.6% 8. NEW MEXICO 9.4% 9. MICHIGAN 8.5% 10. OHIO 8.4% 10 STATES WITH HIGHEST UNEMPLOYMENT RATES RANK STATE RANK Senior Managing Director and Chief Mortgage Operations Officer, PennyMac Financial Services, Inc. Page 34 THE EXCHANGE WITH Steve Bailey RATE RATE STATE

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