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Loan Performance Insights

Introduction

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

“The decline in the overall delinquency rate to its lowest since the onset of the pandemic is good news, but it masks the serious financial challenges that some of the borrower population has experienced. In the months prior to the pandemic, only one-in-five delinquent loans had missed six or more payments. This August, one-in-two borrowers with missed payments were behind six-or-more monthly installments, even though the overall delinquency rate had declined to the lowest level since March 2020.”

– Dr. Frank Nothaft
Chief Economist for CoreLogic

30 Days or More Delinquent – National

In August 2021, 4% of mortgages were delinquent by at least 30 days or more including those in foreclosure.

This represents a 2.6-percentage point decrease in the overall delinquency rate compared with August 2020.

30 Days or More Delinquent National

Financial Challenges Persist

Facing slower than anticipated employment growth — August saw an increase of only 235,000 new jobs compared to the expected 720,000 — households have found creative ways to cut back on spending to prioritize mortgage payments. In a recent CoreLogic survey, over 30% of respondents said they would cut back on both entertainment and travel to focus on repaying outstanding debt. Income growth and a continued buildup in home-equity wealth will be important parts of financial recovery for borrowers hit hardest by the pandemic.

Financial Challenges Persist
Overall Delinquency Rate , Annual Change in Overall Delinquency Rate

“The unprecedented fiscal and monetary stimuli that have been implemented to combat the pandemic are pushing housing prices and home equity to record levels. This phenomenon is driving down delinquencies and fueling a boom in cash-out refinancing transactions.”

– 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%. The rate for early-stage delinquencies – defined as 30 to 59 days past due – was 1.1% in August 2021, down from 1.5% in August 2020. The share of mortgages 60 to 89 days past due was 0.3%, down from 0.8% in August 2020. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 2.6%, down from 4.3% in August 2020.

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

Loan Performance  National

 

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 0.9% in August 2020.

Transition Rates  National

 

Overall Delinquency – State

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

In August 2021, all states saw year over year declines in their overall delinquency rate. New Jersey (down 4.0 percentage points); Florida (down 3.8 percentage points);  and Nevada (down 3.6 percentage points), saw the largest year over year declines. All other states experienced decreases between -1.3 and -3.3 percentage points.

Overall Delinquency - State

 

Serious Delinquency – Metropolitan Areas

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

There were 0 metropolitan areas where the Serious Delinquency Rate increased. 

There were 384 metropolitan areas where the Serious Delinquency Rate remained the same or decreased.

Serious Delinquency – Metropolitan Areas

 

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 August 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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