CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report which shows that, nationally, 5.3 percent of mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure) in December 2017. This represents no change in the overall delinquency rate compared with December 2016 when it was also 5.3 percent.
As of December 2017, the foreclosure inventory rate, which measures the share of mortgages in some stage of the foreclosure process, was 0.6 percent, down 0.2 percentage points from 0.8 percent in December 2016. Since August 2017, the foreclosure inventory rate has been steady at 0.6 percent, the lowest level since June 2007, when it was also 0.6 percent. This past December’s foreclosure inventory rate was the lowest for the month of December in 11 years; it was also 0.6 percent in December 2006.
Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To monitor mortgage performance comprehensively, CoreLogic examines all stages of delinquency, as well as transition rates, which indicate the percentage of mortgages moving from one stage of delinquency to the next.
The rate for early-stage delinquencies – defined as 30-59 days past due – was 2.3 percent in December 2017, up 0.1 percentage points from 2.2 percent in both November 2017 and December 2016. The share of mortgages that were 60-89 days past due in December 2017 was 0.8 percent, down from 0.9 percent in November 2017 and up from 0.7 percent in December 2016. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 2.1 percent in December 2017, up from 2 percent in November 2016 and down from 2.3 percent in December 2016. The December 2017 serious delinquency rate was the lowest for the month of December since December 2006, when it was 1.5 percent.
“The wildfires in Sonoma and Napa counties began October 8 and destroyed or damaged thousands of homes. Two- and three-month delinquency rates have spiked in these two counties, more than doubling between October and December,” said Dr. Frank Nothaft, chief economist for CoreLogic. “The after effects of Hurricanes Harvey, Irma and Maria continue to appear as well. Serious delinquency rates in the Houston and Miami metropolitan areas doubled between September and year-end and quadrupled in the San Juan area of Puerto Rico.”
Since early-stage delinquencies can be volatile, CoreLogic also analyzes transition rates. The share of mortgages that transitioned from current to 30 days past due was 1.1 percent in December 2017, up from 1 percent in both November 2017 and December 2016. This was the highest rate for a December, as it was 1.2 percent in December 2013. By comparison, in January 2007, just before the start of the financial crisis, the current- to 30-day transition rate was 1.2 percent, while it peaked in November 2008 at 2 percent.
“The effect of the wildfires and hurricanes on delinquency transition rates was all too clear in our latest analysis,” said Frank Martell, president and CEO of CoreLogic. “In Sonoma and Napa counties, both 30-to-60 day and 60-to-90 day delinquent transition rates in December were more than double what they had averaged the prior year. Likewise, neighborhoods affected by hurricanes have seen a jump in transition rates in the months immediately following. These natural disasters have stalled or reversed the decline in 30-to-119 day delinquency rates that we had seen previously.”
For ongoing housing trends and data, visit the CoreLogic Insights Blog: www.corelogic.com/insights
The data in this report represents foreclosure and delinquency activity reported through December 2017.
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 typically 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 85 percent coverage of U.S. foreclosure data.
The data provided is for use only by the primary recipient or the primary recipient's publication or broadcast. This data may not be re-sold, 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 is 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 Alyson Austin at firstname.lastname@example.org or Allyse Sanchez at email@example.com. Data provided may not be modified without the prior written permission of CoreLogic. Do not use the data in any unlawful manner. This data is compiled from public records, contributory databases and proprietary analytics, and its accuracy is dependent upon these sources.
CoreLogic (NYSE: CLGX) 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.
Alyson Austin Corporate Communications CoreLogic firstname.lastname@example.org