Delinquency Rate Sees Abrupt Increase in June

BY: ESTHER CHO

After five months of declines, the national mortgage delinquency rate reversed course in June, according to data from Lender Processing Services (LPS).

From May to June, the delinquency rate shot up by 9.9 percent, ending at 6.7 percent, LPS reported. The increased delinquency rate represents the highest level since February of this year. However, prior to February, the delinquency rate is still at its lowest point in over four years.

Additionally, the delinquency rate still posted an annual decrease from last year. Compared to June 2012, the delinquency rate is down by 6.5 percent.

LPS also noted the spike in the delinquency rate is a seasonal phenomenon. Last June, the delinquency rate rose by 3.4 percent.

Foreclosures stayed on track in June, maintaiing both monthly and yedarly decreases. At 2.9 percent, the foreclosure pre-sale inventory rate fell 3.9 percent from May and was down by 28.4 percent from a year ago.

For June, about 4.78 million properties were 30 days or more past due or in foreclosure.

Of that total, 3.32 million were at least 30 days delinquent, but not in foreclosure, while 1.46 million were in foreclosure pre-sale inventory.
LPS’ report also included a ranking of the states with the highest and lowest share of non-current loans (delinquencies and foreclosures).

Florida led with the highest percentage of past due loans, following by Mississippi, New Jersey, New York, and Maine.

The states with the lowest share of unpaid loans were Wyoming, Montana, Alaska, South Dakota, and North Dakota.

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