Tallying the Foreclosure Damage

first_img  Print This Post Tallying the Foreclosure Damage Home / Daily Dose / Tallying the Foreclosure Damage About Author: Nicole Casperson The Best Markets For Residential Property Investors 2 days ago Delinquency rates experienced an increase in Q3 2017 for mortgage loans on one-to-four-unit residential properties, according to the MBA’s National Delinquency Survey. At a seasonally adjusted rate of 4.88 percent of all loans outstanding, the rate was up 64 basis points from Q2 2017 and 36 basis points higher from Q3 2016.Foreclosure action starts represented 0.25 percent of all loans in Q3, a one basis point decrease from the previous quarter and five basis point decrease from a year ago.According to Marina Walsh, MBA’s VP of Industry Analysis, Q3 2017 Hurricanes Harvey, Irma and Maria caused disruptions and destruction in numerous states. Florida, Texas, neighboring states, as well as devastated Puerto Rico, saw substantial increases in their past due rates.“In future surveys, we may see a temporary drop in foreclosure starts in hurricane-impacted states due to storm-related foreclosure moratoria, as was seen during Hurricane Katrina in 2005,” Walsh said.The seriously delinquent rate, which combines loans that are 90 days or more past due with those loans in the process of foreclosure, was 2.52 percent in the third quarter, up 3 basis points from the previous quarter, but 44 basis points lower than one year ago.Mortgage delinquencies increased on a seasonally adjusted basis. The FHA delinquency rate increased to 9.40 percent from 7.94 percent in the second quarter, a 146 basis-point increase and the highest quarter-over-quarter increase reported in the history of our survey.Other delinquency increases included conventional (3.97 percent in Q3 2017, 3.47 percent Q2 2017), and VA (4.24 percent in Q3 2017, 3.72 Q2 2017).”While the storms played a critical factor in explaining the rise in the overall delinquency rate, there are other factors to consider, especially given delinquency rate increases in other states not directly impacted by the storms,” Walsh said.The first factor noted was the timing issues associated with the last day of the month being a Saturday. Second, delinquency rates were already at historic lows in Q2 2017.Meanwhile, other considerable factors include seasonality, rising loan-to-value and debt-to-income ratios for certain product types, normal loan aging, and declining average credit scores on new FHA endorsements since 2014 as the agency has withdrawn from its counter-cyclical role during the crisis. Delinquencies Foreclosures HOUSING mortgage 2017-11-17 Nicole Casperson November 17, 2017 1,530 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribe Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Share Save Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Foreclosure, Headlines, News Tagged with: Delinquencies Foreclosures HOUSING mortgage The Best Markets For Residential Property Investors 2 days ago Nicole Casperson is the Associate Editor of DS News and MReport. She graduated from Texas Tech University where she received her M.A. in Mass Communications and her B.A. in Journalism. Casperson previously worked as a graduate teaching instructor at Texas Tech’s College of Media and Communications. Her thesis will be published by the International Communication Association this fall. To contact Casperson, e-mail: [email protected] Previous: Keeping Up With Home Sales Next: What the HUD Cash Infusion Means for Underinsured Texanslast_img

Leave a Reply

Your email address will not be published. Required fields are marked *