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Loan Performance Insights

Introduction

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

“Economic recovery and loan modification have helped reduce the number of loans that were in serious delinquency by just over one million from the August 2021 peak. Nonetheless, there were about one-half million more loans in serious delinquency in October than at the start of the pandemic in March 2020. ”

– Dr. Frank Nothaft
Chief Economist for CoreLogic

30 Days or More Delinquent – National

In October 2021, 3.8% 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 October 2020.

Figure 5 LPI State Delinquency Rate-OCT2021-01

Improving Employment

After over a year of trying conditions for borrowers, unemployment rates mark an improvement as data from the Bureau of Labor Statistics shows that by October 2021 an estimated 82% of the jobs lost in March and April 2020 were recovered, which translates to roughly 18.2 million Americans back at work. The combination of significant job market improvement, home equity increases and federal assistance programs have helped overall delinquency rates decline to 3.8%, which is close to the October 2019 rate of 3.7%.

“Improving economic security and the benefits of disciplined underwriting practices over the past decade are helping reduce or avoid mortgage delinquencies. We expect to see delinquency trend down over the balance of this year as the economy continues to rebound from the pandemic, employment grows and high levels of fiscal and monetary stimulus continues.”

– 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 3.8%. The rate for early-stage delinquencies – defined as 30 to 59 days past due – was 1.2% in October 2021, down from 1.4% in October 2020. The share of mortgages 60 to 89 days past due was 0.3%, down from 0.6% in October 2020. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 2.2%, down from 4.1% in October 2020.

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

Figure 3 LPI National Delinquency Rate SEPT 2021-01

 

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 0.7%, down from 0.8% in October 2020.

Figure 4 -LPI-Transition Rate OCT 2021-01

 

Overall Delinquency – State

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

In October 2021, all states logged year over year declines in their overall delinquency rate. The states with the largest declines were: Nevada (down 3.7 percentage points); Hawaii (down 3.6 percentage points); and Florida (down 3.5 percentage points).

Figure 5 LPI State Delinquency Rate-OCT2021-01

 

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.

Figure 6 delinquency-CBSA

 

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 October 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 Robin Wachner 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

For more information, please email Robin Wachner at newsmedia@corelogic.com 

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