lps mortgage monitor - july 2012
DESCRIPTION
August 2012 Mortgage Performance Observations Data as of July, 2012 Month-endTRANSCRIPT
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LPS Mortgage MonitorAugust 2012 Mortgage Performance Observations
Data as of July, 2012 Month-end
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July 2012 “First Look”McDash Online Release: August 16th
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DQs are down over 30% from peak;FCs still near all-time highs
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Delinquencies and Foreclosures by State
Average year over year change in non-current percent (includes loans 30+ Delinquent or in Foreclosure)
Judicial =-3.1% Non-judicial =-8.7%
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Non-judicial states have experienced greater improvement in non-current rates
Non-Judicial: Down 31% from peak
Judicial: Down 13% from peak
Few non-judicial states remain close to peak levels
Washington, NJ and Vermont are still at historic highs
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New problem loan rates remainslightly higher in judicial states
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Further house price declines could lead to more new problems
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Nationally, 18% of current loans remain underwater
Top 10
StateNegative Equity %
NV 54.7%
GA 42.8%
FL 33.1%
MI 29.8%
AZ 28.4%
IL 27.4%
ID 24.1%
CA 23.7%
MD 23.4%
WA 22.2%
Bottom 10
StateNegative Equity %
DC 3.3%
TX 3.2%
IN 2.9%
MT 2.8%
OK 2.6%
LA 2.5%
IA 2.4%
NE 1.3%
ND 1.0%
WY 0.4%
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Negative equity and new problem loan correlation is clear by geography
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First time foreclosure starts remain near multi-year lows
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While volumes are down, FC starts as a % of 90+ inventory are steady
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Judicial and non-judicial foreclosure starts continue to diverge
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Foreclosure inventory in judicial states is almost 3x non-judicial
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Foreclosure starts outnumber liquidations by 2:1
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Foreclosure sales in judicial states remained flat in July
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Pipeline ratios in judicial states increased slightly
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Pipeline issues in AR are resolving, NY and NJ are still extreme
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Prepayment rates increased as mortgage rates hit historic lows
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June originations at the highest levels since 2010
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Refi participation has been steadily increasing in lower credit scores
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2011 originations have experienced the largest increase in prepayments