CoreLogic: Early-Stage Delinquencies Up
CoreLogic, Irvine, Calif., reported early stage delinquencies rose slightly in December, but seriously delinquent delinquencies and foreclosures fell.
The company’s monthly Loan Performance Insights Report said the rate for early-stage delinquencies (30-59 days past due) rose to 2.3 percent in December, up 0.1 percentage points from 2.2 percent in both November and a year ago. The share of mortgages 60-89 days past due in December fell to 0.8 percent, down from 0.9 percent in November and up from 0.7 percent a year ago. The serious delinquency rate (90 days or more past due, including loans in foreclosure) stood at 2.1 percent in December.
The report said nationally, 5.3 percent of mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure) in December, unchanged from a year ago. The foreclosure inventory rate fell to 0.6 percent, down 0.2 percentage points from 0.8 percent a year ago. Since August, the foreclosure inventory rate has been steady at 0.6 percent, the lowest level since June 2007.
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 wildfires in Sonoma and Napa counties began October 8 and destroyed or damaged thousands of homes,” said Frank Nothaft, chief economist for CoreLogic. “Two- and three-month delinquency rates have spiked in these two counties, more than doubling between October and December. 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.”
CoreLogic said the share of mortgages that transitioned from current to 30 days past due was 1.1 percent in December, up from 1 percent in both November and a year ago.
“The effect of the wildfires and hurricanes on delinquency transition rates was all too clear,” 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.”
