Introduction

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

“During early autumn, the improving economy enabled more families to remain current on their home loan. In September and October, 0.8% of current borrowers transitioned into 30-day delinquency. This is the same as the monthly average for the 12 months prior to the pandemic, and well below the record peak of 3.4% of borrowers transitioning into delinquency that we observed in April 2020.”

- Dr. Frank Nothaft
Chief Economist for CoreLogic

30 Days or More Delinquent - National

In October 2020, 6.1% of mortgages were delinquent by at least 30 days or more including those in foreclosure.

This represents a 2.4-percentage point increase in the overall delinquency rate compared with October 2019.

30 Plus Delinquency

Recession Impact on Loan Performance

Job loss and increased closures of small businesses triggered higher delinquency rates during the pandemic. A record amount of home equity, and the CARES Act loan forbearance, have helped to keep borrowers out of foreclosure, leading to a decline in the foreclosure rate despite high delinquency rates.

Recession Impact on Loan Performance

“After a financially challenging year, the healthy housing market and new stimulus measures are helping borrowers get back on their feet. Given these variables, we should begin to see a reduced flow of homes in delinquency in the coming months.”

- 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 October was 6.1%. The rate for early-stage delinquencies – defined as 30 to 59 days past due – was 1.4% in October 2020, down from 1.8% in October 2019. The share of mortgages 60 to 89 days past due was 0.6%, unchanged from October 2019. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 4.1%, up from 1.3% in October 2019 but down slightly from 4.2% in September and 4.3% in August.

 As of October 2020, the foreclosure inventory rate was 0.3%, down from 0.4% in October 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 0.8%, up from 0.7% in October 2019.

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 October, every state logged an annual increase in overall delinquency rates, with Hawaii (up 4.7 percentage points) and Nevada (up 4.6 percentage points) again topping the list for gains in October. Hawaii began lifting travel restrictions in mid-October, so we may see the growth of tourism reverse some of the economic effects of the pandemic.

Serious Delinquency – Metropolitan Areas

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

There were 382metropolitan areas where the Serious Delinquency Rate increased.

There were 2 metropolitan area where the Serious Delinquency Rate remained the same or decreased. 

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 October 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

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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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Contact Us

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