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Report Reveals Mortgage Delinquencies Fall to New Three-Year Low
|As home prices and sales have increased in recent months, data from a new report shows mortgage delinquencies fell to a new record low throughout the first quarter of the year.
Friday July 13th, 2012
As home prices and sales have increased in recent months, data from a new report shows mortgage delinquencies fell to a new record low throughout the first quarter of the year.
The Office of the Comptroller of the Currency's Mortgage Metrics Report for the First Quarter of 2012 showed the percentage of first-lien mortgages that were current and performing at the end of the first quarter of 2012 increased to their highest levels in three years. In addition, percentages of mortgages that were 30 to 59 and 60-89 days delinquent decreased to their lowest levels in history.
The agency credits stronger economic conditions, seasonal effects, servicing transfers, home forfeiture actions and home retention programs with improving mortgage performance so far this year.
According to the report, the large number of delinquent loans continues to work through the loss mitigation process. Servicers began 352,989 new home retention actions, including modifications, payment plans and other trial-period plans, during the first three months of the year. During the previous five quarters, the OCC says servicers initiated more than 2.2 million home retention actions.
The number of new foreclosure starts during in the first quarter of 2012 fell to 286,951, down 1.8 percent from the fourth quarter of last year. The inventory of foreclosures in process increased from the previous quarter to 1,269,921, but is still considerably lower than a year ago when the inventory was 1,308,757.
A lower inventory of delinquent homes, including foreclosures and short sales, has allowed home prices to improve in housing markets across the country.
Complete foreclosures increased to 122,979, up 5.9 percent from the previous quarter and 2.7 percent from the first quarter of last year.
The OCC report reveals that servicers have modified 2,543,133 mortgages since the beginning of 2008 through the end of the first quarter last year. At the end of the first quarter this year, 50.7 percent of loans modified made between 2008 and 2011 remained current or had been paid off.
Modifications that were made during that time period that helped homeowner by reducing their monthly payments by 10 percent or more performed better than those that received reduced payments by less than 10 percent.
By the end of the first quarter this year, 57.9 percent of modifications that reduced payments by 10 percent or more were current and performing compared to just 36.8 percent of those that reduced payments by less.
National real estate trends have a major impact on the real estate market on a daily basis. Keeping up-to-date on the latest news and notes posted by GL Homes can make sure those looking for South Florida homes know exactly how the current market will affect them.