Tag Archives: TransUnion

Mortgage Delinquency Rate Drops

9 May

from May 7, 2014  DSNews.com

The mortgage delinquency rate declined to 3.61 percent at the end of the first quarter of 2014, according to TransUnion’s [1] latest mortgage report [2]. Overall, the mortgage delinquency rate has dropped 24 percent in the last year, and has experienced nine consecutive quarters of decline.

Currently, the rate is at the exact same level as it was in the second quarter of 2008, according to the company.

“It’s encouraging to see mortgage delinquencies drop once again, especially during a period when mortgage originations slowed considerably,” said Steve Chaouki, head of financial services for TransUnion. “This trend in improved performance is driven in part by lenders working their way through the foreclosure backlog, along with continued conservatism in underwriting new mortgages.”

Statewide, all 50 states and the District of Columbia saw declines in mortgage delinquency rates between the first quarter of 2013 and the first quarter of 2014. The largest percentages of decline continue to occur in states most impacted by the mortgage crisis: Arizona (-37.8 percent), California (-36.9 percent), and Nevada (-34.0 percent).

“Both Arizona (2.81 percent) and California (2.80 percent), which just five years earlier had delinquency rates nearly double the national average, are now significantly lower than the rest of the nation,” TransUnion remarked.

States with the smallest year-over-year declines include New York (-7.9 percent), New Jersey (-8.1 percent), and Vermont (-8.5 percent).

The company projects that consumer delinquency trends will continue on a downward slide. TransUnion forecasts that mortgage delinquencies will continue falling to approximately 3.4 percent by the end of June. The company based its projections on different economic assumptions, such as gross state product, consumer sentiment, unemployment rates, real personal income, and real estate values.

“We expect mortgage originations will once again pick up steam, and with continued tight lending standards, this should only help further bring down the mortgage delinquency rate,” Chaouki added.


Read the entire article here: http://dsnews.com/mortgage-delinquency-rate-continues-drop/

Mortgage Delinquency Rate Rises Again

17 Feb

adapted from Housing-Wire 2/15/12

The national mortgage delinquency rate rose during the fourth quarter of 2011, TransUnion reported Tuesday, marking only the second time since the end of 2009 the Chicago-based credit bureau has recorded an increase in its quarterly assessment of past due mortgage payments, possibly a troubling trend in the making.


TransUnion calculates the mortgage delinquency rate as the percentage of borrowers 60 or more days behind on their payments, excluding those that are already in foreclosure.

The rate increased from 5.88 percent at the end of the third quarter to 6.01 percent as of the end of the fourth.

Between the third and fourth quarters of 2011, all but 13 states experienced increases in their mortgage delinquency rates, according to TransUnion’s study.

On a more granular level, 64 percent of metropolitan areas saw increases in mortgage delinquencies during the final three months of last year. The previous three months also had the distinction of increases in 64 percent of metros. That’s up from only 21 percent during the second quarter of 2011.

More intrinsic to the current conditions, home prices continued to deteriorate in the fourth quarter of 2011 and unemployment remained stubbornly high.  This combination leads to more negative equity in homes and reduced real personal income that can affect borrowers’ ability and willingness to pay their mortgages.

When looking at the data year-over-year, more homeowners are now making their mortgage payments on time, as evidenced by the 6 percent drop in the national delinquency rate since the fourth quarter of 2010.

The highest mortgage delinquency rates during the fourth quarter were found in Florida (14.27%), Nevada (12.08%), New Jersey (8.32%), and Arizona (7.50%).

States with the lowest mortgage delinquency rates included North Dakota (1.50%), South Dakota (2.45%), Nebraska (2.57%), and Alaska (2.77%).

TransUnion’s forecast calls for mortgage delinquency rates to drift downward marginally in 2012 as the economic environment begins to modestly improve.

In the meantime, however, the agency says the industry may see a quarter or two more of slightly elevated nonpayment rates as some consumers are not able to, or decide not to, repay their mortgage debt obligations in light of the uncertain economic outlook.