December 2020 Loan Performance: Delinquencies Shrink For The Fourth Straight Month

from CoreLogic

The Loan Performance Insights Report for December 2020 shows 5.8% of mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure), which represents a 2.1-percentage point increase in the overall delinquency rate compared to December 2019, when it was 3.7%. However, national overall delinquency has been declining month to month since June 2020.

To gain an accurate view of the mortgage market and loan performance health, CoreLogic examines all stages of delinquency, including the share that transitions from current to 30 days past due. In December 2020, the U.S. delinquency and transition rates, and their year-over-year changes, were as follows:

  • Early-Stage Delinquencies (30 to 59 days past due): 1.4%, down from 1.8% in December 2019.
  • Adverse Delinquency (60 to 89 days past due): 0.5%, down from 0.6% in December 2019.
  • Serious Delinquency (90 days or more past due, including loans in foreclosure): 3.9%, up from 1.2% in December 2019.
  • Foreclosure Inventory Rate (the share of mortgages in some stage of the foreclosure process): 0.3%, down from 0.4% in December 2019.
  • Transition Rate (the share of mortgages that transitioned from current to 30 days past due): 0.8%, unchanged from December 2019.

2020 began with the lowest share of overall delinquencies (30+ days past due) since data recording started in 1999, but as the pandemic and shelter-in-place directives spread, the rate doubled from 3.6% in March to 7.3% in May. As those initially affected by the pandemic and ensuing recession transitioned through stages of delinquency, serious delinquencies (90+ days past due) increased four-fold compared to pre-pandemic rates, peaking in August.

"The ongoing forbearance provisions and economic aid implemented at the start of the pandemic has proved helpful for families faced with financial insecurity," said Frank Martell, president, and CEO of CoreLogic.

1 2
View single page >> |

Disclaimer: No content is to be construed as investment advice and all content is provided for informational purposes only. The reader is solely responsible for determining whether any investment, ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.