Posts Tagged ‘Debt Collection’

Mortgage Delinquency Rates Lowest Since Recession

Posted on December 07, 2017 by Laura Lam

The serious mortgage borrower delinquency rate, which is considered 60 days or more past due, dropped about 16% annually to 1.91% by the end of the third quarter of 2017, according to TransUnion’s report.  “Serious mortgage delinquency rates continue to drop to new post-recession lows, indicating there may be opportunities to responsibly expand access,” said Joe Mellman, TransUnion senior vice president and mortgage business leader. Delinquency rates have continued to drop consistently year-over-year since the third quarter of 2010, and now fell to the lowest point since the recession. In fact, the only state that didn’t see a decrease in annual…

Debt-to-Income Levels Could be Under Stress

Posted on November 28, 2017 by Laura Lam

Defaults for second lien mortgages and other types of consumer credit in October were up compared to the previous month, according to Standard & Poor’s and Experian’s indices.  “For the first time since January 2017, the default rate for autos, bank cards and mortgages all rose together,” said David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices. “The data does not suggest any unusual financial stress facing consumers which would explain the small, but across the board increases in default rates,” he said.  However, “the one concerning item, which might explain the default numbers, is recent…

FHA Loan Delinquency Rate Flattens

Posted on November 09, 2017 by Laura Lam

Closed-end loans continue to return to normal levels as overall consumer delinquencies remained steady and serious delinquency rates remained near the 10-year low.  However Federal Housing Administration loans delinquency rates seem to be slowing down.  FHA loans, popular among first-time home buyers with affordability constraints, have made steady improvements this year but may be reaching a plateau. Loans 90-days delinquent, in foreclosure or involved in bankruptcies remained stable at 4.31% in August. The seasonally adjusted estimate was 5.2% a year ago.  Even though delinquencies have been improving, FHA loans continue to make up a large percentage of the distressed loans…

CMBS Delinquency Rates, Loan Prices Trend Lower

Posted on November 06, 2017 by Laura Lam

Trepp, LLC, a leading provider of information, analytics, and technology to the structured finance, commercial real estate, and banking markets, released its October 2017 U.S. CMBS Delinquency Report last week. The Trepp CMBS Delinquency Rate fell again in September, as more previously delinquent loans continue to be resolved. The delinquency rate for U.S. commercial real estate loans in CMBS is now 5.21%, a drop of 19 basis points from September. For the first time in 2017, the year-to-date level is lower than the final 2016 delinquency reading. “For the past few months, we’ve been saying that further declines in the…

1.4 Million Residential Properties Vacant in 3Q

Posted on November 02, 2017 by Laura Lam

Nearly 1.4 residential properties were vacant at the end of the third quarter, according to ATTOM Data Solutions’ 2017 U.S. Residential Vacant Property and Zombie Foreclosure Report.  The vacant properties represent 1.58% of all residential properties, which is a 1.63% decrease in vacant properties from one year ago, the report found. However, the report also found that rate of vacant properties increased in more than half of the metropolitan area analyzed, including Chicago, New York, St. Louis, Baltimore and Phoenix. ATTOM also found that that the number of vacant “zombie” pre-foreclosure properties – which have started the foreclosure process but…

Credit Card Delinquencies Are Rising

Posted on November 01, 2017 by Laura Lam

While it’s easy to ignore when the stock market is at record highs and unemployment is reassuringly low, household debt is on the rise.  The Center for Microeconomic Data’s (CMD) latest Quarterly Report on Household Debt and Credit reveals that total household debt rose by $114 billion (0.9%) to $12.84 trillion in the second quarter of 2017.  This increase put overall household debt $164 billion above its peak in the third quarter of 2008, and 15.1% above its trough in the second quarter of 2013 Consumer debt, in many ways, should generate more concern – during the good times.  The persistence of…

Best and Worst States for Consumer Credit Scores

Posted on October 30, 2017 by Laura Lam

Consumer credit varies nationally due to regional variations in income and the cost of living.  According to a new study from LendEDU and Experian, the Northeast had the highest average credit score (694). The Midwest (693), Pacific (691), and Rocky Mountain (690) regions followed closely behind. The Southeast (668) and Southwest (662) regions had the lowest credit scores on average.  The best average state scores are roughly 7% higher than the national average, while the worst states are about 7% lower. Vantage Scores were used for the rankings. Scores of 700 and above are considered good, and below 650 is…

Delinquency Rate Continues at 10-year Low

Posted on October 26, 2017 by Laura Lam

CoreLogic released its latest Loan Performance Insights report on national foreclosure and delinquency activity earlier this month.  According to the report, the share of mortgages that transitioned from current to 30-days past due was 0.9% in July 2017, down from 1.1% in July 2016. CoreLogic compares this to January of 2007 when “just before the start of the financial crisis, the current-to-30-day transition rate was 1.2% and peaked in November 2008 at 2%.” In addition, it is noted that 4.6% of mortgages were in some stage of delinquency in July 2017 – a 0.9 percentage point year-over-year decline in the…

Foreclosure Activity Plunges to 11-Year Low

Posted on October 23, 2017 by Laura Lam

Foreclosure activity hit an 11-year low in this year’s third quarter, as an improving economy and stricter mortgage standards helped stabilize the housing market to pre-2008 levels.  ATTOM Data Solutions released a report this week revealing that third-quarter foreclosure activity is down 13% from the previous quarter and 35% from a year ago. The Q3 2017 U.S. Foreclosure Market Report showed a total of 191,824 U.S. properties with foreclosure filings, such as default notices, scheduled auctions or bank repossessions. This determined foreclosure activity in Q3 2017 was 31% below the pre-recession average of 278,912 properties with foreclosure filings per quarter between Q1…

Banks Prepare for Credit Card Defaults

Posted on October 20, 2017 by Laura Lam

Credit card delinquencies increased for three consecutive months, adding to signs that consumers in the U.S. are having a tough time paying their debt.  According to recent reports, credit card data from JPMorgan, Discover Financial Services and Bank of America show that the number of delinquencies is on the rise. The reason for the uptick in the number of people who can’t pay their credit card bills is due to lenders going after consumers with less-than-stellar credit ratings. Although this practice is intended to fuel growth in a low-interest rate environment, the lower credit quality is coming back to bite…