{"id":527664,"date":"2010-04-14T10:32:00","date_gmt":"2010-04-14T14:32:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/mortgage-delinquencies-are-a-growing-problem-2010-4"},"modified":"2010-04-14T10:32:00","modified_gmt":"2010-04-14T14:32:00","slug":"heres-why-mortgage-delinquencies-are-still-a-big-and-growing-problem","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/527664","title":{"rendered":"Here’s Why Mortgage Delinquencies Are Still A Big And Growing Problem"},"content":{"rendered":"

\"LPS<\/a>Even as home prices tentatively rise, the gorilla in the room is growth in delinquent loans.<\/p>\n

Delinquent loans are up for several reasons. Obama is doing everything he can<\/a> to prevent foreclosures, which means more mortgages languish in delinquency. More Americans are poorer than ever<\/a>, and are unable to pay the mortgage. Others have caught the default contagion and may be flirting the idea of a strategic default<\/a>.<\/p>\n

What happens if delinquent loans become foreclosures and flood the market is a severe drop in home prices.<\/p>\n

The evidence is in the latest Mortgage Monitor from LPS<\/a>.<\/p>\n

See the evidence here ><\/a><\/strong><\/h2>\n

February delinquencies were up 21.3% from last year<\/h2>\n

\"February<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

Foreclosure inventory is up 51.1% from last year<\/h2>\n

\"Foreclosure<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

Inventory is bloated with non-current loans<\/h2>\n

\"Inventory<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

Red dot means a major foreclosure problem<\/h2>\n

\"Red<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

Red dot means a major foreclosure and\/or delinquent loan problem<\/h2>\n

\"Red<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

Loans are going bad at record rates<\/h2>\n

\"Loans<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

1,145,000 loans went bad from Jan. to Feb.<\/h2>\n

\"1,145,000<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

Nevada and Mississippi are at the heart of the delinquent mortgage spike<\/h2>\n

\"Nevada<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

Foreclosed homes are not selling<\/h2>\n

\"Foreclosed<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

Although FHA production declining…<\/h2>\n

\"Although<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

And although FHA origination attributes have improved…<\/h2>\n

\"And<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

FHA loans are still going bad at rising rates<\/h2>\n

\"FHA<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

Even at moderate credit scores<\/h2>\n

\"Even<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

Even at good credit scores<\/h2>\n

\"Even<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

2008 FHA loans are going bad as quickly as other high risk products <\/h2>\n

\"2008<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

An unprecedented volume of FHA loans are in advanced delinquency <\/h2>\n

\"An<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

But it’s not all bad news<\/h2>\n

\"But<\/div>\n

While delinquent loans present a huge risk, other aspects of the housing market are getting better.<\/p>\n

Better loan practices will decrease the number of new delinquencies. A strong-enough recovery in prices could salvage underwater mortgages, removing the incentive to default.<\/p>\n

<\/p>\n

February is a clear improvement<\/h2>\n

\"February<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

Delinquent loans are improving at record rates<\/h2>\n

\"Delinquent<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

HAMP is helping<\/h2>\n

\"HAMP<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

Although more loans deteriorated than improved…<\/h2>\n

\"Although<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

The ratio of deteriorating-to-improving loans is improving<\/h2>\n

\"The<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

Roll rate into foreclosure is down (thanks to high number of delinquent loans)<\/h2>\n

\"Roll<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

Recent deterioration rate (red) is bad… but things have been worse (gray) <\/h2>\n

\"Recent<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

Banks have become slower to foreclose on delinquent loans<\/h2>\n

\"Banks<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

Jumbo loans are in decline<\/h2>\n

\"Jumbo<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

Jumbo loan standards have improved<\/h2>\n

\"Jumbo<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

Almost all jumbo loans have solid credit scores<\/h2>\n

\"Almost<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

First payment default rates for all loans are down<\/h2>\n

\"First<\/p>\n

Image: LPS<\/p>\n<\/div>\n

Source: LPS<\/a><\/p>\n

<\/p>\n

Read more…<\/h2>\n

\"Read<\/p>\n

Image: Zillow<\/p>\n<\/div>\n

The 10 Housing Markets That Are Still Wildly Overvalued<\/a><\/h2>\n

Join the conversation about this story »<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Even as home prices tentatively rise, the gorilla in the room is growth in delinquent loans. Delinquent loans are up for several reasons. Obama is doing everything he can to prevent foreclosures, which means more mortgages languish in delinquency. More Americans are poorer than ever, and are unable to pay the mortgage. Others have caught […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-527664","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/527664","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=527664"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/527664\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=527664"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=527664"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=527664"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}