Friday, July 13, 2012

Colorado 6th best for non-current loans, judicial foreclosure states report highest rates

According to the June LPS Mortgage Monitor , released Monday by Lender Processing Serives, 11.3 percent of mortgage loans during May were "non-current" in the United States. That is, they were 90-plus-days delinquent or were in foreclosure.

In Colorado, the percentage of active mortgage loans that were non-current during March was 6.1 percent, which was down 10.6 percent from the same period last year.  Colorado's year-over-year decline in non-current loans was the 7th largest in the nation. Only Nevada, Michigan, Arizona, California, Montana and Wyoming showed larger declines.

Only five states reported lower percentages of non-current loans than Colorado, making Colorado 6th-best in the nation for the percentage of its mortgage loans that were non-current during May 2012. Montana, Wyoming, South Dakota, Alaska and North Dakota reported lower percentages of non-current loans during May.

The states with the highest rates of non-current loans were Florida, Mississippi and New Jersey with non-current rates of 21.3 percent, 17.0 percent and 15.8 percent, respectively.

Colorado is a non-judicial state for foreclosure processing. As noted by the economics blog Calculated Risk, judicial states in this LPS report reported the highest rates for loans that are in foreclosure or are seriously delinquent. Among the top-ten states for the highest non-current loan rates, seven of them are judicial states including Florida, New Jersey, Illinois, Ohio, Indiana, New York and Maryland. 

According to LPS: "LPS Mortgage Monitor is an in-depth report of mortgage industry performance. The monthly report is based on data from the company’s market-leading repository of loan-level residential mortgage data and performance information, including more than 40 million active loans across the credit spectrum. This data is analyzed by LPS experts to produce more than 30 charts and graphs reflecting both trend and point-in-time performance observations."

(The June report includes data up through May.)