DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.
Issue link: http://digital.dsnews.com/i/987704
74 NATIONAL SNAPSHOT Regional IN THE EYE OF RECOVERY Though costal states are finally seeing marked recovery in mortgage delinquencies, some are still feeling the tail end of impact from 2017's hurricanes and wildfires. By Molly Boesel In January 2018, 4.9 percent of home mortgages were in some stage of delinquency, down from 5.1 percent a year earlier and the lowest for any January since 2007, when it was 4.5 percent, according to the latest CoreLogic Loan Performance Insights Report. e measure includes all home loans 30 days or more past due, including those in foreclosure. For the month of January, the share of delinquent mortgages was high- est—12 percent—in January 2010. e foreclosure inventory rate, the share of mortgages in some stage of the foreclosure process, was 0.6 percent in January 2018, down from 0.8 percent a year earlier. e foreclosure rate is back to the pre-crisis (average of 2000 to 2006) level of 0.6 percent. e share of mortgages that were 30 to 59 days past due—considered "early-stage" delin- quencies—was 2 percent in January 2018, down from 2.1 percent in January 2017. e share of mortgages 60 to 89 days past due was 0.8 percent in January 2018, up from 0.7 percent in January 2017. e decrease in early-stage delin- quencies reflects the fading impact of the 2017 hurricanes and wildfires. In addition to delinquency rates, CoreLogic tracks the rate at which mortgages transition from one stage of delinquency to the next, such as going from being current to 30 days past due. Figure 1 shows that the current- to 30-day transition rate remained well below housing crisis levels in January. e rate had increased in recent months, mainly due to the hurricanes. e January 2018 current- to 30-day rate was 0.8 percent, down from 0.9 percent in January 2017. e 30- to 60-day transition rate was 14 percent in January 2018, down from 15.3 percent in January 2017, while the 60- to 90-day transition rate was 26.5 percent this January, down from 26.8 percent from a year earlier. Figure 2 shows the states with the highest and lowest rate of mortgages in some stage of delinquency. In January 2018 that rate was highest in Mississippi—8.8 percent—and low- est in Colorado at 2 percent. Florida had the second-highest delinquency rate of any state at 8.4 percent. e delinquency rate in Florida increased by 2.4 percentage points from a year earlier due to effects from the late summer 2017 hurricanes. While Texas was not among the top five states with the highest overall delinquency rate, its rate rose from 5.6 percent in January 2017 to 6.3 percent in January 2018. Figure 3 shows the 30-plus-day past-due rate for the 10 largest metro areas (metro areas used in this report are the ten most populous Core Based Statistical Areas). at rate was highest—10.6 percent—in the Miami metro area and lowest—1.6 percent—in San Francisco. Both Miami and Houston saw large increases in delinquency rates from a year ago because of the hurricanes. e delinquency rate in Miami rose from 7.1 percent in January 2017 to 10.6 percent in January 2018, and the delinquency rate in Houston rose from 5.9 percent in January 2017 to 9.1 percent in January 2018. STATS AT A GLANCE Early-stage delinquencies fell year-over- year, reflecting fading impact of 2017 hurricanes and wildfires Florida and Texas recorded large year- over-year increases in delinquencies in January Miami's delinquency rate the highest among 10 largest metros in January