Mort­gage fore­clo­sure rate low­est since 2003

The Palm Beach Post - Residences - - Front Page -

The mort­gage fore­clo­sure rate has dropped to a more nor­mal rate. This was the ma­jor point in a re­port re­cently is­sued by the Mort­gage Bankers As­so­ci­a­tion.

“The delin­quency rate for mort­gage loans on one-to-four-unit res­i­den­tial prop­er­ties de­creased to a sea­son­ally ad­justed rate of 4.77 per­cent of all loans out­stand­ing at the end of the fourth quar­ter of 2015. This was the low­est level since the third quar­ter of 2006.

“The delin­quency rate de­creased 22 ba­sis points from the pre­vi­ous quar­ter, and 91 ba­sis points from one year ago, ac­cord­ing to the Mort­gage Bankers As­so­ci­a­tion’s Na­tional Delin­quency Sur­vey, re­leased at the as­so­ci­a­tion’s Na­tional Mort­gage Ser­vic­ing Con­fer­ence and Expo 2016 in Or­lando, FL.

“The delin­quency rate in­cludes loans that are at least one pay­ment past due but does not in­clude loans in the process of fore­clo­sure.”

The re­port spec­i­fied the type of loans that were most af­fected by the re­duced num­ber of fore­clo­sures.

“The per­cent­age of loans on which fore­clo­sure ac­tions were started dur­ing the fourth quar­ter was 0.36 per­cent, a de­crease of two ba­sis points from the pre­vi­ous quar­ter, and down 10 ba­sis points from one year ago. This fore­clo­sure start rate was at the low­est level since the se­cond quar­ter of 2003.

“The per­cent­age of loans in the fore­clo­sure process at the end of the third quar­ter was 1.77 per­cent, down 11 ba­sis points from the third quar­ter and 50 ba­sis points lower than one year ago. This was the low­est fore­clo­sure in­ven­tory rate seen since the third quar­ter of 2007.”

The re­port in­cluded a com­ment by Ma­rina Walsh, MBA’s Vice Pres­i­dent of In­dus­try Anal­y­sis:

“The over­all delin­quency rate fell to pre-re­ces­sion lev­els and at 4.8 per­cent, was lower than the his­tor­i­cal av­er­age of 5.4 per­cent for the time pe­riod 1979 to 2015. The rate at which new fore­clo­sures were started de­creased to 0.36 per­cent, the low­est rate since 2003 and only one­fourth of the record high level dur­ing the worst of the fore­clo­sure cri­sis in the third quar­ter of 2009.”

Jim Woodard

Open House

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