Friday, November 1, 2013

Total number of mortgages in Colorado continues to decline

The MBA delinquency report, in addition to foreclosure and delinquency numbers (see our coverage of the report here) also covers total mortgage loans being serviced in the state.

The first graph shows that the total number of mortgages has declined from its peak of 1,020,000 during the third quarter of 2007, to a total of 940,000 during the second quarter of 2013. That's a decline of 7.8 percent.

We also see that the total number of mortgages serviced has generally declined since 2007, and really started to fall by late 2011. Total mortgages did start to increase again during the first half of 2013 as foreclosure filings declined by 50 percent and low interest rates continued to spur more loans.

The totals provided by the MBA report also allowed us to analyze how much of the foreclosure  inventory was actually going to final foreclosure sale during a given quarter. In the second graph, I've graphed the proportion. I've taken the total number of mortgages in the foreclosure inventory and compared them to the total number of foreclosure sales:

We find that in 2007, lenders were moving forward very aggressively with foreclosures and than more than 40 percent of the foreclosure inventory went to foreclosure sale in some quarters. Since 2008, however, less than 25 percent of the foreclosure inventory has gone to final foreclosure each quarter.