Posts Tagged ‘delinquency’

Foreclosure Activity Hits Post-Recession Low in April

Posted on June 08, 2017 by Laura Lam

ATTOM Data Solutions released its April 2017 U.S. Foreclosure Market data, which shows foreclosure filings – default notices, scheduled auctions and bank repossessions – were reported on 77,049 U.S. properties in April, down 7% from the previous month and down 23% from a year ago to the lowest level since November 2005. “Foreclosure activity continued to search for a new post-recession floor in April thanks in large part to the above-par performance of mortgages originated in the past 7 years,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “Meanwhile we are seeing an elevated share of repeat foreclosures…

Mortgage Delinquencies Hit 8-Year High In April

Posted on May 25, 2017 by Laura Lam

The delinquency rate on first-lien mortgages (30 days or more past due) stood at 4.08% as of the end of April – an increase of 12.93% compared with March but a decrease of 3.58% in April 2016, according to Black Knight Financial Services’ First Look report.  It was the largest monthly increase in the mortgage delinquency rate in more than 8 years, the company says. However, Black Knight notes that the increase was primarily calendar-driven due to both the month ending on a Sunday and March being the typical calendar-year low and largely isolated to early-stage delinquencies.  As of the end…

Household Debt Hits New Record

Posted on May 23, 2017 by Laura Lam

Household debt is topping its 2008 peak prior to the housing crash. Total household debt has risen to $12.73 trillion in the first quarter, the Federal Reserve Bank of New York reported last week. However, Americans are handling their debt—mortgages, credit cards, auto loans, and other forms of borrowing – much better, the report shows.  Americans were delinquent on 4.8% of total debt in the first quarter. For comparison, at the end of 2009, 11.9% of consumers were delinquent on their debt by at least 30 days. The increase in household debt may indicate that more Americans are confident about…

Subprime Student Loans Resemble Pre-Crisis Mortgage Loans

Posted on April 28, 2017 by Laura Lam

Millions of U.S. parents have taken out loans from the government to help their children pay for college … now a crushing bill is coming due.  Hundreds of thousands have tumbled into delinquency and default. In the process, many have delayed retirement, put off health expenses and lost portions of Social Security checks and tax refunds to their lender, the federal government. Student loans made through parents come from an Education Department program called Parent Plus, which has loans outstanding to more than 3 million Americans. These loan applications ask almost nothing about its borrowers’ incomes, existing debts, savings, credit…

Consumer Defaults Predicted to Rise in 2017

Posted on April 24, 2017 by Laura Lam

About 17% of all U.S. consumers are likely to default on a loan payment over the next year, according to a recent report from UBS. More interesting, perhaps, is who these defaulters are.  The UBS Evidence Lab reports that the group’s profile is “middle and upper income, younger, male, urban, and concentrated in the coastal regions.” The UBS researchers also found evidence that defaults on auto loans are likely to spread to more non-prime defaults on credit cards and personal loans. About 16% of all auto loans outstanding are subprime, amounting to $179 billion out of total auto loans of…

Lending Trouble Lies Ahead in 2017

Posted on January 04, 2017 by Laura Lam

Mortgages, commercial-and-industrial loans, subprime auto lending and student lending are ripe for setbacks and, in some cases, crises in 2017.  Here is a breakdown of each of those risk factors, the reasons behind them and the possible upsides or alternative strategies. Mortgages – The refinance market has largely carried the mortgage industry over the past few years because consumers took advantage of historically low rates. Now that the Federal Open Market Committee has raised rates twice in the past year, and the benchmark 10-year Treasury has spiked upward since the presidential election, many expect the refinancing market to nosedive.  “We’ll…

Foreclosure Starts Fall to 11-Year Low

Posted on December 06, 2016 by Laura Lam

Foreclosure starts dropped to the lowest level recorded since January 2005, according to Black Knight Financial Services’ (BKFS) October First Look report.  In total, there were 56,500 foreclosure starts in October, down 8.43% from September and 22.81% from a year earlier. There are 504,000 homes in the presale inventory, down 5,000 from September and 217,000 from October 2015. BKFS also reported that 0.99% of mortgages were in the foreclosure process, down from 1.43% a year ago. While foreclosures fell on all accounts, the total delinquency rate, which includes loans that are 30 or more days past due but not in…

Has Auto Lending Lost Its Luster?

Posted on November 10, 2016 by Laura Lam

Regulators have been warning about frothy conditions in the market for automobile loans. But things had to hit close to home – shrinking loan yields and rising delinquencies – before bankers really paid attention.  Now, several companies said that they plan to scale back indirect auto lending, citing increased competition and narrowing spreads. Others are reducing exposure by selling off large chunks of auto loans – though those banks insist they remain committed to auto lending. Their moves come at a time when auto lending has reached record highs. The volume of auto loans made by banks, credit unions and…

Foreclosure Rate Falls to 9-Year Low

Posted on November 02, 2016 by Laura Lam

The percentage of foreclosed mortgages reached its lowest point in nine years, according to Black Knight Financial Services’ September First Look report.  The presale foreclosure rate of 1% represents a 3.38% decline from August and a 31.23% year-over-year decline. There are 509,000 homes in the presale inventory, down 18,000 from the previous month and 228,000 from last September. There were 61,700 foreclosure starts for the month, a 10.32% reduction from the previous month and a drop of 22.78% from September 2015. There are 2.17 million properties which are more than 30 days late but not in foreclosure as of Sept. 30, an increase…

Commercial Mortgage Delinquencies Begin to Rise Again

Posted on October 12, 2016 by Laura Lam

Late payments on securitized commercial mortgages reversed course in September and resumed a climb that began in March, according to Trepp.  The delinquency rate for U.S. commercial real estate loans in CMBS is now 4.78%, an increase of 10 basis points from August. The September jump represents the 6th time in the last 7 months that the rate has increased after falling to a multiyear low of 4.15% in February. The rate is 50 basis points lower than the year-ago level and 39 basis points lower since the beginning of the year.  The all-time high was 10.34% in July 2012….