Thursday, April 15, 2010

Colorado ranked among states with fewest delinquent mortgage loans

As of February 2010, Coloradans are delinquent on 6.7 percent of their mortgage loans. According to a report released today by Lender Processing Services, a leading provider of mortgage performance data and analytics, the total number of delinquent loans nationally was 21.3 percent higher than the same period last year. Although the data showed a small 1.45 percent seasonal decline in delinquencies from January 2010 to February 2010 month-end, the national delinquency rate still stood at 10.2 percent. The report is based on data as of February 2010 month-end.

In Colorado, 7.6 percent of mortgage loans were delinquent and 1.8 percent of loans were in foreclosure, for a total of 8.5 percent of loans that are non-current.

These rates place Colorado behind only seven other states in having the lowest rate for the total number of non-current loans. Vermont, Montana, Nebraska, Wyoming, Alaska, South Dakota and North Dakota had lower rates of non-current loans. The lowest rate was found in North Dakota where only 4.7 percent of loans were non-current and 0.8 percent of loans were in foreclosure.

The highest rates of non-current loans were found in Florida, Nevada, and Arizona where non-current loan rates were 23.8 percent, 23.3 percent and 16.3 percent, respectively.

Nationally, foreclosure inventories reached record highs. February's foreclosure rate of 3.31 percent represented a 51.1 percent year-over-year increase. The percentage of new problem loans also remains at a five-year high. The total number of non-current first-lien mortgages and REO properties is now more than 7.9 million loans. Furthermore, the percentage of new problem loans is also at its highest level in five years. More than 1.1 million loans that were current at the beginning of January 2010 were already at least 30 days delinquent or in foreclosure by February 2010 month-end.

As a result of the federal government's Home Affordable Modification Program (HAMP), delinquent loans that were modified and that remained current through HAMP's three-month trial period - called "cures-to-current" - have increased. Advanced delinquency rolls, however, remain elevated from a historical perspective.

LPS manages the nation's leading repository of loan-level residential mortgage data and performance information from approximately 40 million loans across the spectrum of credit products. The company's research experts carefully analyze this data to produce dozens of charts and graphs that reflect trend and point-in-time observations for LPS' monthly Mortgage Monitor Report.