National home loan delinquency rates increased 2.3% in May to 9.2%, according to a report released today by Lender Processing Services.

In light of slowing seasonal improvements, the report indicated an increase in early-stage delinquencies and a slight rise in the number of mortgage loans in default beyond 90 days. Delinquency and foreclosure rates remained stable at record high levels, with more than 7.3 million loans currently in some stage of delinquency or REO.

It takes an average of 449 days, an all-time high, for a loan to move from 30-days delinquent to foreclosure sale. The rising average leads to an increase in “shadow” foreclosure inventory.

Deterioration ratios also increased after a two-month decline, with 2.5 loans obtaining a “worse” status for each loan that has improved. The “greater than six months delinquent” category was the only one to decrease, which the firm attributed to trial modifications made through the Home Affordable Modification Program (HAMP).

Additionally, the report placed the total U.S. loan delinquency rate at 9.2%, the total U.S. foreclosure inventory rate at 3.18%, and the total U.S. non-current loan rate at 12.38%.

Results showed that Florida, Nevada, Mississippi, Georgia, Arizona, California, Illinois, New Jersey, Ohio, and Indiana had the most non-current loans, while North Dakota, South Dakota, Wyoming, Alaska, Montana, Nebraska, Vermont, Colorado, Iowa, and Minnesota had the fewest non-current loans.

Non-current totals combine foreclosures and delinquencies as a percent of active loans in each state, with totals based on the LPS applied analytics loan-level database of mortgage assets.

LPS provides integrated technology and services to the mortgage and real estate industries. 


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