Delinquencies See Biggest Year-to-Date Drop Since 2002

DSNews: 07/08/2013 – Esther Cho

Delinquencies saw the steepest year-to-date drop since 2002 in May as new problem loan rates inched toward pre-crisis lows, according to Lender Processing Services’ (LPS) Mortgage Monitor report released Monday.

Since the end of last year, the delinquency rate has fallen by more than 15 percent to 6.08 percent in May.“Though they are still approximately 1.4 times what they were, on average, during the 1995 to 2005 period, delinquencies have come down significantly from their January 2010 peak,” said Herb Blecher, SVP of applied analytics at LPS.

Delinquencies on prime and nonprime loan products have plummeted 43 percent from the 2010 peak, according to LPS.“In large part, this is due to the continuing decline in new problem loans — as fewer problem loans are coming into the system, the existing inventories are working their way through the pipeline,” he added.

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