17
Journal
FIRST MORTGAGE
DEFAULT RATES:
SEPTEMBER
UPDATE
anks to the federal foreclosure
moratorium sending more homeowners into
forbearance, the default rate for first mortgages
remained steady in September, but that number
could go up as servicers begin processing and
reporting foreclosures since the moratorium's
expiration on July 31.
S&P Dow Jones Indices and Experian data
through September 2021 for the S&P/Experian
Consumer Credit Default Indices has found
that the first mortgage default rate remained
unchanged at 0.27% while bank card defaults
fell to 2.11% and auto loan defaults rose to
0.35%.
e general composite rate of defaults of
first mortgages, credit cards, and automotive
loans also remained steady at 0.39% down
from 0.63% from September 2020. e current
default rate of 0.27% for mortgages is also down
year over year from 0.46% last September.
While data for the different types of
defaults is not available, the composite default
score in the top five metropolitan statistical
areas (MSAs) all fell year over year but
remained relatively steady over the last month.
Over the last year, the composite default rate
for the New York City MSA fell from 0.88%
to 0.40%; Chicago fell from 0.65% to 0.43%;
Dallas fell from 0.62% to 0.43%; Los Angeles
fell from 0.71% to 0.31%; and Miami fell from
1.80% to 0.80%.
According to a separate report, ATTOM, a
real-estate data company, released its Q3 2021
U.S. Foreclosure Market Report, which showed
there were a total of 45,517 properties with
foreclosure filings—default notices, scheduled
auctions, or bank repossessions—up 34% from
the previous quarter and 68% from a year ago.
On a nationwide scale, foreclosures represented
1-in-7,008 properties.
e report also showed that there were a
total of 19,609 properties with active foreclosure
filings against them in September, up 24% since
August (which had 15,838 foreclosures) and up
102% year over year.
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