DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.
Issue link: http://digital.dsnews.com/i/1514602
MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 64 January 2024 J O U R N A L for each group at the end of Q3 of 2023 were as follows: » Banks and thrifts (90 or more days delinquent or in nonaccrual): 0.85%, an increase of 0.18 percentage points from the second quarter of 2023; » Life company portfolios (60 or more days delinquent): 0.32%, an increase of 0.18 percentage points from the second quarter of 2023; » Fannie Mae (60 or more days de- linquent): 0.54%, an increase of 0.17 percentage points from the second quarter of 2023; » Freddie Mac (60 or more days de- linquent): 0.24%, an increase of 0.03 percentage points from the second quarter of 2023; and » CMBS (30 or more days delinquent or in REO): 4.26%, an increase of 0.44 percentage points from the second quarter of 2023. Construction and development loans are generally not included in the numbers presented in this report but are included in many regulatory definitions of "commercial real estate," despite the fact they are often backed by single-fami- ly residential development projects rath- er than by office buildings, apartment buildings, shopping centers, or other income-producing properties. The FDIC delinquency rates for bank and thrift-held mortgages reported here do include loans backed by owner-occu- pied commercial properties. U.S. DELINQUENCY RATES TICKED UP IN THE FALL I ntercontinental Exchange, Inc. (ICE), released its "First Look" on November 2023 month-end mortgage performance statistics derived from its loan-level database representing most of the national mortgage market. The national delinquency rate edged higher to 3.39% in November—down 10 basis points (BPS) from the same time last year—but remains 64 BPS below pre-pandemic levels. Key Findings: » While delinquencies remain low over- all, the rate among FHA loans is now at a nine-year high (excluding the immedi- ate aftermath of the pandemic) and will be worth watching closely in 2024. » Early-stage delinquencies among VA loans hit their highest non-pandemic levels since 2009, as rising interest rates have begun to impact performance among recently originated loans. » GSE mortgages have been more resilient, with early-stage delinquen- cies holding stronger and overall delinquency rates less than half the national average at 1.51%. » Serious delinquencies (90+ days past due) rose to 459,000 but remain down 123,000 (-21%) from November 2022. » Foreclosure starts decreased by 12.2% in November to 29,000, with active foreclosure inventory falling to 216,000, some 23% and 24% below 2019 levels, respectively. » Prepayment activity fell again under continued pressure from seasonal homebuying patterns, along with the residual effects of 30-year rates climb- ing above 7.75% the month prior. Data as of November 30, 2023: Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 3.39% » Month-over-month change: 3.95% » Year-over-year change: -2.88% Total U.S. foreclosure pre-sale inven- tory rate: 0.41% » Month-over-month change: -0.40% » Year-over-year change: -8.18% Total U.S. foreclosure starts: 29,000 » Month-over-month change: -12.19% » Year-over-year change: 6.70% Monthly prepayment rate (SMM): 0.37% » Month-over-month change: -14.13% » Year-over-year change: -11.08% Foreclosure sales: 6,500 » Month-over-month change: 0.70% » Year-over-year change: 3.81% Number of properties that are 30 or more days past due but not in foreclo- sure: 1,804,000 » Month-over-month change: 70,000 » Year-over-year change: -24,000 Number of properties that are 90 or more days past due but not in foreclo- sure: 459,000 » Month-over-month change: 12,000 » Year-over-year change: -123,000 Number of properties in foreclosure pre-sale inventory: 216,000 » Month-over-month change: -1,000 » Year-over-year change: -16,000 Number of properties that are 30 or more days past due or in foreclosure: 2,020,000 » Month-over-month change: 69,000 » Year-over-year change: -39,000 Top Five States by Non-Current Percentage: 1. Mississippi: 8.11% 2. Louisiana: 7.75% 3. Alabama: 5.78% 4. Indiana: 5.24% 5. Arkansas: 5.18% Bottom Five States by Non-Current Percentage: 1. California: 2.24% 2. Idaho: 2.16% 3. Washington: 2.07% 4. Montana: 2.06% 5. Colorado: 1.99% Top Five States by 90+ Days Delin- quent Percentage: 1. Mississippi: 2.12% 2. Louisiana: 1.87% 3. Alabama: 1.46% 4. Arkansas: 1.30% 5. Georgia: 1.21%