CONFERENCE
CALENDAR
PLACES TO BE THIS MONTH
DECEMBER 4
SIFMA 2013 Annual
Meeting
BOSTON CONVENTION & EXHIBITION CENTER
BOSTON, MASSACHUSETTS
Contact: 510.658.9252
Online: INMAN.COM/AGENT-REBOOT
DECEMBER 4-6
Single Family
Aggregation: The
REO-to-Rental Forum
JW MARRIOTT CAMELBACK INN
SCOTTSDALE, ARIZONA
Contact: 212.224.3428
Online: IMN.ORG/REAL-ESTATE
DECEMBER 4-6
Independent Mortgage
Bankers Conference
INTERCONTINENTAL MIAMI
MIAMI, FLORIDA
Contact: 800.793.6222
Online: MBAA.ORG/CONFERENCES
DECEMBER 5-6
Western Non-Traded REIT
Industry Symposium
ST. REGIS MONARCH
DANA POINT, CALIFORNIA
Contact: 212.224.3428
Online: IMN.ORG/REAL-ESTATE
JANUARY 15-17
Real Estate Connect–
New York City
GRAND HYATT NEW YORK
NEW YORK, NEW YORK
Contact: 510.658.9252
Online: INMAN.COM/CONNECT
JANUARY 26-29
ASF 2014
ARIA HOTEL
LAS VEGAS, NEVADA
Contact: 212.412.7100
Online: AMERICANSECURITIZATION.COM
14
SERIOUS DELINQUENCIES
HIT FIVE-YEAR MILESTONE
Severely delinquent mortgage balance less than $300M
for first time since 2008.
Mortgage delinquencies are on the
decline, according to a report from
Equifax. Home finance write-offs year-todate through September total $96.3 billion,
down 22 percent compared to the same
time period last year, the company says.
"We're now back to where we were in
mid-2008 in terms of severely delinquent
first mortgages, and current trends suggest
we will be at pre-recession levels of severe
delinquencies by the end of 2014," said Amy
Crews Cutts, chief economist at Equifax.
She credits "improvements in labor
markets and rising home values" for the
recent declines in delinquencies, adding
that "the outlook is very positive for
continued improvement."
Delinquencies on first mortgages
declined 24.5 percent year-over-year in
September, according to Equifax. Severe
delinquencies—those 90 or more days
past due—also declined, falling about 29
percent over the year.
In fact, Equifax points out that the
balance of mortgages in severe delinquency
is less than $300 million for the first time in
five years. Loans originated between 2005
and 2007—the bubble years—make up 64
percent of the loans in severe delinquency,
according to Equifax.
REO rates also declined over the year in
September, down 27.9 percent and reaching
a low not seen in more than five years.
Equifax reports the current REO rate is
1.71 percent.
"Generally speaking, transitions to
deeper stages of delinquency are slowing,
so for example, fewer loans that are now 30
days late are transitioning to 60 days late,"
according to Crews Cutts.
Crews Cutts also pointed out that
Equifax has witnessed "acceleration in
the transition rates from loans that have
started the foreclosure process to being
bank-owned in REO status." This trend
she attributes to "reductions in judicial
timelines in states where foreclosures have
to go through court review."
Delinquencies among home equity
installment loans and home equity
revolving loans also declined over the
year, falling 21.9 percent and 17.6 percent,
respectively, according to the Equifax
report.
The amount of severely delinquent
home equity installment loans
decreased 8.4 percent annually in
September, Equifax reports, while
severe delinquencies among home equity
revolving loans fell 24 percent.
