Solutions

Share on facebook
Share on twitter
Share on linkedin

Loan Performance Insights

Introduction

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

 

“Natural hazard events and job loss in the oil and gas industry during the past year continue to affect local delinquency rates, despite a general decline in delinquency rates in many urban areas. Of all metros, Odessa and Midland, Texas, had the largest one-year jumps in serious delinquency rates, followed by Lake Charles, Louisiana, which was hit hard by Hurricanes Laura and Delta in 2020.”

– Dr. Frank Nothaft
Chief Economist for CoreLogic

 

30 Days or More Delinquent – National

In April 2021, 4.7% of mortgages were delinquent by at least 30 days or more including those in foreclosure.

This represents a 1.4-percentage point decrease in the overall delinquency rate compared with April 2020.

Opportunity to Bounce Back

CoreLogic’s data for April 2021 reports its first year-over-year decrease and the lowest overall delinquency rate since the onset of the pandemic as job and income recovery enables more homeowners to remain or return to “current” mortgage payment status. Additionally, in an effort to help borrowers who are in forbearance programs, financial institutions and government entities are continuing to enact provisions that give homeowners ample opportunity to bounce back and keep their homes.

Figure 2 Top Markets at Risk of Home Price Decline

 

“The sharp rebound in the economy, as well as a potent combination of government fiscal and regulatory help, is fueling unprecedented demand for residential housing and enabling people to buy and stay in their homes. The drop in delinquency rates is a further manifestation of the benefits of these tail winds. Barring an unforeseen change, we expect rates to continue to fall and home prices rise over the next 12-to-18 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 April was 4.7%. The rate for early-stage delinquencies – defined as 30 to 59 days past due – was 1% in April 2021, down from 4.2% in April 2020. The share of mortgages 60 to 89 days past due was 0.3%, down from 0.7% in April 2020. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 3.3%, up from 1.2% in April 2020.

As of April 2021, the foreclosure inventory rate was 0.3%, unchanged from April 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 3.4% in April 2020.

 

Overall Delinquency – State

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

  • In April, nearly all U.S. states logged a decrease in annual overall delinquency rates (only Wyoming experienced a slight increase with a 0.1 percentage-point uptick), and a significant portion of metro areas posted at least a small annual decrease, with only eight experiencing a year-over-year increase.

Figure 5 30 Day Delinquency YOY Change

 

Serious Delinquency – Metropolitan Areas

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

There were 384 metropolitan areas where the Serious Delinquency Rate increased.  

There were 0 metropolitan areas where the Serious Delinquency Rate remined the same or decreased. 

Figure 6: 90+ Delinquency YOY Change

 

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 April 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.

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 (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.

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.

Share on facebook
Share on twitter
Share on linkedin
Get The Latest Updates

Subscribe To Our Newsletter

By submitting this form I agree that CoreLogic may contact me at the email address I provided for information about products, services or insights. I understand that consent can be withdrawn at any time by clicking the unsubscribe link contained in email messages.

Most Recent

Want to learn more about CoreLogic Economic Trends?

We’ve got more answers to the questions you have.

See Solutions

Related Posts

Header City Above
Find Stories

Comparing Two Home Price Booms, Fifteen Years Apart

As home prices soar in 2021, many comparisons are being made between the current housing environment and the one in 2006. However, despite recent double-digit home price appreciation, the mortgage payment to purchase a home is substantially more affordable than it was 15 years ago.

Intelligence

Effect of Hurricanes on Local Housing Markets

In 2020, in the span of six weeks, Hurricanes Laura and Delta made landfall 12 miles apart, together taking nearly 100 lives and decimating southwest Louisiana. A look back at the effects of these two hurricanes on the Lake Charles metro shows the potential effects on properties.