Figures released by Lender Processing Services (LPS) in its April Mortgage Monitor reported the largest monthly increase in delinquencies in recent years at 2.4%. This rise is considerable even though April usually has the biggest rise in new delinquencies.

The rate of delinquencies is still noticeably down from January of this year and compared to the high that was recorded in January 2010. The current total U.S. loan delinquency rate is now at 7.97%. 

The number of new problem loans reported continued its downward trend and reached a three-year low at 1.28%. As stated by the LPS report, this figure shows improvement as it is less than half of its 2009 peak level. 

Large decreases in both foreclosure starts and sales demonstrated the effect of the ongoing process reviews and moratoria. 

According to LPS, the foreclosure pre-sale inventory rate dropped by 1.6% and the foreclosure starts rate was down by 31% from the previous month. Foreclosure sales also declined and are significantly below the recorded pre-moratoria levels. 

However, the average foreclosure timeline continued its upward trend of extension as the average loan repayment period reached an all-time high of 567 days past due. The LPS report stated that of the loans that are in foreclosure, 33% have not made a payment in over two years.

Currently, the states with the highest percentages of non-current loans, defined by LPS as the combined number of foreclosures and delinquencies as a percent of active loans in that state, are Florida, Nevada, Mississippi, New Jersey, and Georgia. The states with the lowest percentages are Montana, Wyoming, Alaska, South Dakota, and North Dakota.  

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