Loan Performance Insights – September 2022 (Second Edition)

The CoreLogic Loan Performance Insights report presents an interactive view of our mortgage performance analysis through July 2022.

Measuring early delinquency rates is important for analyzing the health of the mortgage market. To more comprehensively monitor mortgage performance, CoreLogic examines all delinquency stages as well as transition rates which indicate the percentage of mortgages moving from one delinquency stage to the next.

The report is released monthly with coverage at the national, state, and Central Statistical Area (CBSA)/metro level and includes transition rates between delinquency states and separate breakouts for delinquencies over 120 days.

“Early-stage delinquencies show a small but clear upward trend month-over-month and year-over-year. While the share of mortgages 30 to 89 days past due remains below pre-pandemic levels, the slight increase is occurring in most parts of the country and could indicate that more borrowers are struggling to make their mortgages. monthly payments.

In July 2022, 3% of mortgages were in arrears for at least 30 days or more, including those in foreclosure.

This represents a decrease of 1.2 percentage points in the overall delinquency rate compared to July 2021.

Mortgage delinquencies down for the 16th consecutive month on an annual basis

Although overall U.S. mortgage delinquencies rose again in July from the start of 2022, they fell for the 16th consecutive year-over-year month and remained near historic lows. The national foreclosure rate has remained stable at 0.3% since March, but has increased by 0.1 percentage point compared to July 2021. This slight increase reflects trends at the metropolitan level, with almost two-thirds of the areas that CoreLogic follows showing small annual gains in foreclosures. The slight increase in foreclosures may be due to the end of mortgage forbearance periods and moratoriums for some homeowners, while the increase in delinquencies could indicate that inflation is negatively impacting the ability of others to make payments monthly.

Loan performance – National

CoreLogic examines all stages of delinquency to more comprehensively monitor mortgage performance.

The country’s overall crime rate for July was 3%. The rate of early payment arrears – defined as payments 30 to 59 days late – was 1.3% in July 2022, up from July 2021. The share of mortgages 60 to 89 days past due was 0.4%, up from July 2021. the delinquency rate – defined as late payment of 90 days or more, including loans in foreclosure – was 1.3%, up from 2 .8% in July 2021.

In July 2022, the foreclosure inventory rate was 0.3%, up from July 2021.

Transition rate – National

CoreLogic examines all delinquency stages as well as transition rates which indicate the percentage of mortgages moving from one delinquency stage to the next.

The share of mortgages that moved from current to 30-day maturity was 0.7%, up from July 2021.

Global Delinquency – State

Aggregate delinquency is defined as 30 days or more past due, including those in foreclosure.

In July 2022, all states recorded year-over-year declines in their overall crime rates. The states with the largest declines were Hawaii and Nevada (both down 2.3 percentage points), New Jersey (down 2.1 percentage points) and New York (down 2 .0 percentage points).

Serious crime – Metropolitan regions

Serious delinquency is defined as 90 days or more past due, including loans in foreclosure.

There was Nope metropolitan areas where the serious crime rate increase.

There was 384 metropolitan areas where the serious crime rate decreases.

LPI Delinquency CBSA

Summary

Measuring early delinquency rates is important for analyzing the health of the mortgage market. To more comprehensively monitor mortgage performance, CoreLogic examines all delinquency stages as well as transition rates which indicate the percentage of mortgages moving from one delinquency stage to the next.

For current housing data and trends, visit the CoreLogic Insights blog: www.corelogic.com/insights.

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Methodology

The data in the CoreLogic Loan Performance Insights report represents reported foreclosure and delinquency activity through July 2022. The data in this report only considers first liens on a property and does not include secondary liens. Delinquency, transition and foreclosure rates are measured only against homes that have an outstanding mortgage. Houses without mortgage liens are not subject to foreclosure and are therefore excluded from the analysis. About a third of homes nationwide are owned and mortgage free. CoreLogic has approximately 75% coverage of US seizure data.

Source: CoreLogic

The data provided is intended for use only by the primary recipient or the primary recipient’s publication or broadcast. This data may not be resold, republished, or licensed to any other source, including publications and sources owned by the primary recipient’s parent company without CoreLogic’s prior written permission. All CoreLogic data used for publication or dissemination, in whole or in part, must be sourced from CoreLogic, a data and analytics company. For use with broadcast or web content, the citation should directly accompany the first data reference. If the data is illustrated by maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or on the website. For questions, analysis, or data interpretation, contact Robin Wachner at [email protected] For all sales enquiries, contact [email protected] Data provided may not be changed without prior written permission from CoreLogic. Do not use the data illegally. Data is compiled from public records, contributory databases and proprietary analytics, and its accuracy depends on these sources.

About CoreLogic

CoreLogic is a leading global provider of property information, analytics, and data-driven solutions. The company’s combined data from public, contributory and proprietary sources includes more than 4.5 billion records spanning over 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, location, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets and the public sector. CoreLogic delivers value to customers through unique data, analytics, workflow technology, advisory and managed services. Customers rely on CoreLogic to identify and manage growth opportunities, improve performance and mitigate risk. Based in Irvine, California, CoreLogic operates in North America, Western Europe and Asia-Pacific. For more information, please visit www.corelogic.com.

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Contact

For more information, please email Robin Wachner at [email protected]

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