MBA Chart of the Week: Loans in Foreclosure Process

Since fourth quarter 2012, New Jersey, New York and Florida have had the highest percentage of loans in foreclosure in the nation, according to data from the Mortgage Bankers Association’s National Delinquency Survey. All three states primarily use a judicial foreclosure process.   

The good news is that their foreclosure inventories are falling. Florida’s foreclosure inventory declined by 266 basis points over the year ending in the third quarter. The decrease in New Jersey and New York over the past year were smaller at 95 basis points and 149 basis points, respectively. Foreclosure inventories decreased by 51 basis points for the nation as a whole.  

As reported in the NDS release last week, the decline in New York and New Jersey inventories between second and third quarter 2015 was particularly notable. New Jersey experienced the largest reduction in the nation as its foreclosure inventory fell by 84 basis points in a single quarter. Similarly, New York saw the largest quarterly decline in its history, falling by 54 basis points.  

To view the Chart of the Week, click https://www.mba.org/news-research-and-resources/forecasts-data-and-reports/forecasts-and-commentary/chart-of-the-week.  

(Lynn Fisher is vice president of research and economics with the Mortgage Bankers Association; she can be reached at lfisher@mba.org. Joel Kan associate vice president of economic forecasting with MBA; he can be reached at jkan@mortgagebankers.org. Marina Walsh is vice president of industry benchmarking and research with MBA; she can be reached at mwalsh@mba.org.)