DS News

DS News December 2020

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

Issue link: http://digital.dsnews.com/i/1315468

Contents of this Issue


Page 8 of 100

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 STUNNING DELINQUENCY SPIKE COULD MEAN 'BUMPY WATERS AHEAD' Due to forbearance plans, home foreclosures are at record lows, but skyrocketing serious-delinquency rates point to a rough road ahead. at is according to CoreLogic, provider of property-data analysis, in its monthly Loan Performance Insights report for August. It showed, nationally: » Overall delinquency rate for August was 6.6%. » e rate for early-stage delinquencies (30-59 days past due) was 1.6%, down from 1.8% in August 2019. » e share of mortgages 60-89 days past due was .8%, up from .6% in August 2019. » e serious delinquency rate (90 days or more past due, including loans in foreclosure) was 4.3%, up from 1.3% in August 2019. » is is the highest serious delinquency rate since February 2014. » As of August 2020, the foreclosure inventory rate was .3%, down from .4% in August 2019. "Five months into the pandemic, the 150-day delinquency rate for August spiked to 1.2%. is was the highest rate in more than 21 years and double the January 2010 peak during the home-price bust," said Frank Nothaft, Chief Economist for CoreLogic. "e spike in delinquency was all the more stunning given the generational low of 0.08% in March and April." Homeowners approaching the end of the initial 180-day grace period, which is afforded to those with federally- backed mortgages, can now request an additional 180 days, and that, according to the report, is keeping foreclosures low as serious delinquency climbs. However, the researchers say that "looming unpaid mortgage payments, paired with sharp declines in income for many families, point to a potential wave of home sales triggered by financial distress in 2021 as forbearance periods end." Nothaft added, "Forbearance programs continue to reduce the flow of homes into foreclosure and distressed sales and has been the key to helping many families who have been particularly hard hit by the pandemic. Even though foreclosure rates are at a historic low, the spike in 150-day past-due loans points to bumpy waters ahead." New Jersey, New York, Nevada, Florida, and Hawaii recorded the highest overall delinquency rates, the report showed. 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. MBA estimates 2.8 million homeowners are in forbearance plans. According to a survey from Harvard University's Joint Center for Housing Studies, homeowners of color with household incomes below $30,000 are disproportionately impacted by COVID-19 challenges. 1. VERNON, LA 2. COLUMBIA, AR 3. RUSSELL, AL 4. SCHOHARIE, NY 5. CABELL, WV 6. STARR, TX 7. WEBSTER, LA 8. DOUGHERTY, GA 9. LYNCHBURG, VA 10. PULASKI, MO LOWEST CONCENTRATION OF EQUITY RICH HOMES (Q3 2020) 1. SAN FRANCISCO, CA 2. WASHINGTON, WI 3. SANTA CLARA, CA 4. SAN MATEO, CA 5. DUKES, MA 6. RAVALLI, MT 7. NANTUCKET, MA 8. KINGS, NY 9. CHITTENDEN, VT 10. TETON, WY HIGHEST CONCENTRATION OF EQUITY-RICH HOMES (Q3 2020) RANK REGION RANK Co-CEO/Co-President, Community Loan Servicing REGION Page 20 THE EXCHANGE WITH Vanessa Lindow

Articles in this issue

Archives of this issue

view archives of DS News - DS News December 2020