Monday, October 15, 2018

Report: Stateside mortgage delinquencies lowest in 11 years, while Puerto Rico’s spikes

By on June 13, 2018

SAN JUAN – CoreLogic, a California-based property-analytics provider, released its monthly Loan Performance Insights Report, which shows that, 4.3 percent of mortgages stateside were in some stage of delinquency in March, while the rate had quadrupled in Puerto Rico.

The U.S. mainland figure for March represents a 0.1 percentage point decline in the overall delinquency rate–of those 30 days or more past due, including those in foreclosure–compared with March 2017, when it was 4.4 percent.

“As we enter the summer, the risk of hurricane and wildfire damage to homes increases as does the risk of damage-related loan default,” said Frank Martell, president and CEO of CoreLogic. “Last year’s hurricanes and wildfires continue to affect today’s default rates. Serious delinquency rates are more than double what they were before last autumn’s hurricanes in Houston, Texas, and Naples, Florida. The serious delinquency rates have also quadrupled in Puerto Rico.”

Corelogic’s report for November 2017, two months after hurricanes Irma and Maria struck the island, reflected that Puerto Rico’s serious-delinquency rate, or 90 days or more past due, rose  2.7 percentage points, to 6.3%, that month. The rate rose fourfold in the San Juan metro area in December.

As of March 2018, the stateside foreclosure inventory rate, which measures the share of mortgages in some stage of the foreclosure process, was 0.6 percent, down 0.2 percentage points from 0.8 percent in March 2017. It was the lowest for that month in 11 years.

“Unemployment and lack of home equity are two factors that can lead to borrowers defaulting on their mortgages,” said Dr. Frank Nothaft, chief economist for CoreLogic. “Unemployment is at the lowest level in 18 years, and for the first quarter, the CoreLogic Equity Report revealed record levels of home equity growth with equity per owner up $16,300 on average for the year ending March 2018” in the mainland U.S.

The data in the report accounts for only first liens against a property and does not include secondary liens. Approximately one-third of homes stateside are owned outright and do not have a mortgage.

“The states with the lowest 30-plus delinquency rate in March 2018 were Colorado (1.8%), North Dakota (1.9%) and Washington and Oregon (2.1%). The 30-plus delinquency rate was highest in Mississippi (7.7%) and Florida and Louisiana (8.1%).

“Among the largest U.S. metro areas, the highest 30-plus delinquency rates in March were posted in Miami (9.1%) and Houston (7.6%). Among these metro areas, the lowest rate was reported in San Francisco (1.5%) and Denver (1.6%),” 24/7 Wall St. gleaned from the report.

The data is compiled from public records, contributory databases and proprietary analytics. CoreLogic has approximately 85 percent coverage of U.S. foreclosure data, according to the firm.

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