LPS: Delinquency Rate Increases in September

Foreclosure inventory continued to diminish in September, but the delinquency rate saw a sudden month-over-month surge, according to the “first look” mortgage report from Lender Processing Servicers (LPS), which has a loan-level database covering about 70 percent of the market.

The delinquency rate, which stood at 7.40 percent in September, hiked up 7.72 percent from August, but is still down by 4.19 percent from a year ago. The delinquency rate includes loans 30 days or more past due, but not in foreclosure. The rate actually increased in April, May, and June before falling in July and August.

The foreclosure inventory rate dropped further, falling to 3.87 percent, the first time in nearly two years the rate was below 4 percent. The foreclosure inventory rate was down from the previous month by 4.05 percent and down from a year ago by 7.37 percent.

As of September, there are 5.64 million properties that are 30 days or more past due or in foreclosure.

The percent (and number) of loans 90+ days delinquent and in the foreclosure process is still very high.

LPS: Percent Loans Delinquent and in Foreclosure Process
	Sept 2012	August 2012	Sept 2011
Delinquent	7.40%	6.87%	7.72%
In Foreclosure	3.87%	4.04%	4.18%
Number of properties:
Number of properties that are 30 or more, and less than 90 days past due, but not in foreclosure:	2,170,000	1,910,000	2,250,000
Number of properties that are 90 or more days delinquent, but not in foreclosure:	1,530,000	1,520,000	1,730,000
Number of properties in foreclosure pre-sale inventory:	1,940,000	2,020,000	2,130,000
Total Properties	5,640,000	5,450,000	6,130,000