Introduction

The CoreLogic Loan Performance Insights report features an interactive view of our mortgage performance analysis through December 2019.

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.

The report is published monthly with coverage at the national, state and Core Based Statistical Area (CBSA)/Metro level and includes transition rates between states of delinquency and separate breakouts for 120+ day delinquency.

“The CoreLogic HPI shows home price growth quickened during the last few months of 2019, padding the home equity cushion for owner. Our HPI Forecast for 2020 anticipates a further pickup in appreciation, adding to home-equity wealth for owners and lowering foreclosure risk.”

- Dr. Frank Nothaft
Chief Economist for CoreLogic

30 Days or More Delinquent - National

The 30 days or more delinquency rate for December 2019 was 3.7%.

In December 2019, 3.7% of mortgages were delinquent by at least 30 days or more including those in foreclosure.

This represents a 0.4% decline in the overall delinquency rate compared with December 2018.

30 Plus Delinquency

Delinquency Hotspots

No states posted a year-over-year increase in the overall delinquency rate in December. The states that logged the largest annual decreases included North Carolina and Mississippi (both down 0.8 percentage points). South Carolina (down 0.7 percentage points) experienced the third-largest annual decrease, followed by Louisiana, New York and Tennessee (all down 0.6 percentage points).

Thirteen metropolitan areas recorded small annual increases in overall delinquency rates. The largest annual increases were in Janesville-Beloit, Wisconsin (up 1.9 percentage points); Enid, Oklahoma (up 0.6 percentage points) and Pine Bluff, Arkansas (up 0.6 percentage points). The other 10 metro areas experienced increases between 0.1 and 0.2 percentage points.

While the nation’s serious delinquency rate reached a near 20-year low in December, 16 metro areas recorded at least a small annual increase. Enid, Oklahoma logged the largest increase (up 0.4 percentage points), followed by Pine Bluff, Arkansas (up 0.3 percentage points); Dubuque, Iowa (up 0.2 percentage points) and St. Joseph, Missouri-Kansas (up 0.2 percentage points). The other 12 metro areas logged increases of 0.1 percentage points.

Consumer Research

“The mortgage market had another solid year in 2019, and loan performance across the country continues to show improvement. The longest economic expansion in history helped serious delinquency rates reach a 20-year low. As mortgage rates continue to fall in the wake of recent global events, we may see homeowners refinance into lower-monthly payments, or into shorter-term mortgages, which can further reduce delinquency and foreclosure risk.”

- Frank Martell
President and CEO of CoreLogic

Loan Performance - National

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

As of December 2019, the foreclosure inventory rate was 0.4%, unchanged from December 2018.

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 0.8% in December 2019, down from 0.9% in December 2018. By comparison, in January 2007, just before the start of the financial crisis, the current-to-30-day transition rate was 1.2% and peaked in November 2008 at 2%.

National Transition Rate
Delinquency By State

Serious Delinquency - State

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

No states saw an annual increase in Serious Delinquency Rate

Serious Delinquency – Metropolitan Areas

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

There were 16 metropolitan areas where the Serious Delinquency Rate increased.

There were 40 metropolitan areas where the Serious Delinquency Rate remained the same

All the remaining metropolitan areas saw the Serious Delinquency Rate decrease.

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.

The nation's overall delinquency rate was the lowest for an December in at least 20 years. The share of mortgages that transitioned from current to 30-days past due was 0.8% in December 2019, down from 0.9% in December 2018.

By comparison, in January 2007, just before the start of the financial crisis, the current-to-30-day transition rate was 1.2% and peaked in November 2008 at 2%.

Despite recent stress in some areas of the country, mortgage delinquency rates continue to stay at near-record lows.

Methodology

The data in this report represents foreclosure and delinquency activity reported through December 2019. 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 typically 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 85 percent coverage of U.S. foreclosure data.

Source: CoreLogic

The data provided is for use only by the primary recipient or the primary recipient's publication or broadcast. This data may not be re-sold, 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 is illustrated with maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or website. Data provided may not be modified without the prior written permission of CoreLogic. Do not use the data in any unlawful manner. This data is 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, acquire and protect their homes. For more information, please visit www.corelogic.com.

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For more information, please email Allyse Sanchez at allyse@ink-co.com.