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Loan Performance Insights

Introduction

The CoreLogic Loan Performance Insights report features an interactive view of our mortgage performance analysis through July 2021.

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.

“Even if loan modification or income recovery is unable to help delinquent homeowners become and remain current on their payments, the double-digit rise in home prices may help them avoid a distressed sale. Homeowners with substantial home equity are far less likely to experience a foreclosure sale, and fortunately, the CoreLogic Home Equity Report found the average owner gained $51,500 in equity in the past year — a five-fold annual increase.”

– Dr. Frank Nothaft
Chief Economist for CoreLogic

30 Days or More Delinquent – National

In July 2021, 4.2% of mortgages were delinquent by at least 30 days or more including those in foreclosure.

This represents a 2.3-percentage point decrease in the overall delinquency rate compared with July 2020.

30 Plus Delinquency

Six Months Past Due

While we continue to see serious delinquencies improve, approximately one million people nationwide have been unable to make payments for at least half a year. In fact, the share of borrowers six months or more past due made up about one-half of the total delinquencies in July, with many still leaning on options such as forbearance, loan modifications and other government provisions to keep from entering foreclosure.

 

 

“Declining delinquency levels are an encouraging sign of economic improvement and the durability of the housing market. Looking ahead to the end of many  forbearance and other assistance programs, many borrowers receiving support must consider their financial options, including a potential loan modification, to ensure they stay current and keep foreclosures at bay.”

– 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 July was 4.2%. The rate for early-stage delinquencies – defined as 30 to 59 days past due – was 1.1% in July 2021, down from 1.5% in July 2020. The share of mortgages 60 to 89 days past due was 0.3%, down from 1% in July 2020. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 2.8%, down from 4.1% in July 2020. While still high, this is the lowest serious delinquency rate since May 2020.

As of July 2021, the foreclosure inventory rate was 0.2%, down from 0.3% in July 2020.

 

 

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 0.6%, down from 1% in June 2020. This is the lowest foreclosure rate recorded since CoreLogic began recording data (1999).

 

 

Overall Delinquency – State

Overall delinquency is defined as 30-days or more past due, including those in foreclosure.

In July, all U.S. states logged a decrease in annual overall delinquency rates, with New Jersey (down 3.9 percentage points), Florida (down 3.5 percentage points) and Nevada (down 3.3 percentage points) leading with the largest declines.

 

 

Serious Delinquency – Metropolitan Areas

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

There were 3 metropolitan areas where the Serious Delinquency Rate increased. 

There were 381 metropolitan areas where the Serious Delinquency Rate remained the same or decreased.

 

 

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.

CoreLogic Insights – On the Go or Download Apple App Store or Google play

 

Methodology

The data in the CoreLogic Loan Performance Insights report represents foreclosure and delinquency activity reported through July 2021.

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.

About the CoreLogic Consumer Housing Sentiment Study

3,000+ consumers were surveyed by CoreLogic via Qualtrics. The study is an annual pulse of U.S. housing market dynamics concentrated on consumers looking to purchase a home, consumers not looking to purchase a home, and current mortgage holder. The survey was conducted in April 2021 and hosted on Qualtrics.

The survey has a sampling error of ~3% at the total respondent level with a 95% confidence level.

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 Amy Brennan 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 is a leading global property information, analytics and data-enabled solutions provider. The company’s combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.

CORELOGIC and the CoreLogic logo are trademarks of CoreLogic, Inc. and/or its subsidiaries.

Contact Us

For more information, please email Amy Brennan at newsmedia@corelogic.com.

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