The November Mortgage Monitor report released by Lender Processing Services (LPS) showed that the volume of loans moving to REO is still dropping with the moratoria further delaying foreclosure sales.

While the 90+ delinquency category has steadily decreased, the number of loans moving to seriously delinquent status beyond 90 days far outpaced the number of foreclosure starts, according to LPS. Close to 2.2 million loans are 90 days or more delinquent but, although are not yet in foreclosure.

Foreclosure inventories also increased for the fifth consecutive month as delinquent accounts are referred for foreclosure. However, the sale of foreclosure properties still dropped.

When compared with the levels in January 2008, the foreclosure inventory of Jumbo prime loans is close to seven times more; the inventory of agency prime loans is almost six times higher; while the foreclosure inventory of option ARM loans is about five times the inventory in January 2008, LPS reported.

The report also showed that a third of loans that are 90 days or more delinquent have not made a payment in a year. However, LPS said that the number of new problem loans dropped almost 5.4% from October. This is the opposite of the seasonality trend that usually affects new delinquencies at this time of the year. Self-cures for loans one to two months delinquent rose in November to a six-month high.

InNovember, 261,153 loans were referred to foreclosure. This makes up a .7% month-over-month dip, according to LPS. The total number of delinquent loans is close to 2.1 times historical averages. Meanwhile, foreclosure inventory is now at 7.7 times historical averages. 

Other key finding from LPS' latest Mortgage Monitor report showed that the total U.S. loan delinquency rate is at  9.02%;  the total U.S. foreclosure inventory rate is 4.08%; the total
U.S. non-current loan rate is at 13.10%; the states with the most non-current loans are  Florida, Nevada, Mississippi, Georgia, and ew Jersey; and the states with the fewest non-current loans are  North Dakota, South Dakota, Alaska, Wyoming, and Montana.

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