Introduction

The CoreLogic Loan Performance Insights report features an interactive view of our mortgage performance analysis through August 2020.

Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To more comprehensively monitor mortgage performance, CoreLogic examines all stages of delinquency as well as transition rates that indicate the percent of mortgages moving from one stage of delinquency to the next.

“Five months into the pandemic, the 150-day delinquency rate for August spiked to 1.2%. This was the highest rate in more than 21 years and double the January 2010 peak during the home-price bust. The spike in delinquency was all the more stunning given the generational low of 0.08% in March and April.”

- Dr. Frank Nothaft
Chief Economist for CoreLogic

30 Days or More Delinquent - National

In August 2020, 6.6% of mortgages were delinquent by at least 30 days or more including those in foreclosure.

This represents a 2.9-percentage point increase in the overall delinquency rate compared with August 2019.

30 Plus Delinquency

Recession Impact on Loan Performance

Foreclosure rates remain low, in part due to forbearance programs and other government provisions. However, August 2020 marked a spike in 150-day past-due loans, reaching a historic high of 1.2%, likely due to large volumes of delinquencies moving in tandem through the pipeline. Homeowners nearing the end of the first 180-day grace period (afforded to borrowers with federally backed mortgages) can request an extension of an additional 180 days, which is keeping foreclosure rates low while serious delinquency continues to climb. However, back-mortgage payments continue to add up for those unable to exit forbearance periods early. Looming unpaid mortgage payments, paired with sharp declines in income for many families, point to a potential wave of home sales triggered by financial distress in 2021 as forbearance periods end.  

Recession Impact on Loan Performance

“Forbearance programs continue to reduce the flow of homes into foreclosure and distressed sales and has been the key to helping many families who have been particularly hard hit by the pandemic. Even though foreclosure rates are at a historic low, the spike in 150-day past-due loans points to bumpy waters ahead.”

- Frank Martell
President and CEO of CoreLogic

Loan Performance - National

CoreLogic examines all stages of delinquency to more comprehensively monitor mortgage performance.

The nation's overall delinquency rate for August was 6.6%. The rate for early-stage delinquencies – defined as 30 to 59 days past due – was 1.6% in August 2020, down from 1.8% in August 2019. The share of mortgages 60 to 89 days past due was 0.8%, up from 0.6% in August 2019. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 4.3%, up from 1.3% in August 2019. This is the highest serious delinquency rate since February 2014.

As of August 2020, the foreclosure inventory rate was 0.3%, down from 0.4% in August 2019.

Transition Rates - National

CoreLogic examines all stages of delinquency as well as transition rates that indicate the percent of mortgages moving from one stage of delinquency to the next.

The share of mortgages that transitioned from current to 30-days past due was 0.9%, up from 0.8% in August 2019. The transition rate has slowed since April 2020 — when it peaked at 3.4%.

National Transition Rate
Delinquency By State

Serious Delinquency - State

Serious delinquency is defined as 90 days or more past due including loans in foreclosure.

In August, every state logged an annual increase in overall delinquency rates. Popular tourism destinations again showed the highest increases, with Nevada (up 5.3 percentage points), Hawaii (up 4.9 percentage points), New Jersey (up 4.6 percentage points), Florida (up 4.5 percentage points) and New York (up 4.4 percentage points) topping the list for gains.

Serious Delinquency – Metropolitan Areas

Serious delinquency is defined as 90 days or more past due including loans in foreclosure.

There were 383 metropolitan areas where the Serious Delinquency Rate increased in August. Odessa, Texas — which has been hard hit by job loss in the oil and gas industry — again experienced the largest annual increase of 10.1 percentage points. Other metro areas with significant serious delinquency increases included Midland, Texas (up 7.9 percentage points); Kahului, Hawaii (up 7.6 percentage points) and Miami (up 7.0 percentage points).

Dubuque, Iowa, was the only metro area to experience an annual decline in overall delinquency rate at -1.5%.

Delinquency CBSA Map

Summary

Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To more comprehensively monitor mortgage performance, CoreLogic examines all stages of delinquency as well as transition rates that indicate the percent of mortgages moving from one stage of delinquency to the next.

For ongoing housing trends and data, visit the CoreLogic Insights Blog: www.corelogic.com/insights.

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Methodology

The data in the CoreLogic Loan Performance Insights report represents foreclosure and delinquency activity reported through August 2020.

The data in this report accounts for only first liens against a property and does not include secondary liens. The delinquency, transition and foreclosure rates are measured only against homes that have an outstanding mortgage. Homes without mortgage liens are not subject to foreclosure and are, therefore, excluded from the analysis. Approximately one-third of homes nationally are owned outright and do not have a mortgage. CoreLogic has approximately 75% coverage of U.S. foreclosure data.

Source: CoreLogic

The data provided are for use only by the primary recipient or the primary recipient's publication or broadcast. This data may not be resold, republished or licensed to any other source, including publications and sources owned by the primary recipient’s parent company without prior written permission from CoreLogic. Any CoreLogic data used for publication or broadcast, in whole or in part, must be sourced as coming from CoreLogic, a data and analytics company. For use with broadcast or web content, the citation must directly accompany first reference of the data. If the data are illustrated with maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or website. For questions, analysis or interpretation of the data, contact Valerie Sheets at newsmedia@corelogic.com. Data provided may not be modified without the prior written permission of CoreLogic. Do not use the data in any unlawful manner. The data are compiled from public records, contributory databases and proprietary analytics, and its accuracy is dependent upon these sources.


About CoreLogic

CoreLogic (NYSE: CLGX), the leading provider of property insights and solutions, promotes a healthy housing market and thriving communities. Through its enhanced property data solutions, services and technologies, CoreLogic enables real estate professionals, financial institutions, insurance carriers, government agencies and other housing market participants to help millions of people find, buy and protect their homes. For more information, please visit www.corelogic.com.

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For more information, please email Valerie Sheets at newsmedia@corelogic.com.