LPS: Huge Backlog of Foreclosures, Option ARM Foreclosures Skyrocket
LPS: Huge Backlog of Foreclosures, Option ARM Foreclosures Skyrocket
LPS: Huge Backlog of Foreclosures, Option ARM Foreclosures Skyrocket
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March 29, 2011 (Jeff Alan)
mortgage-skyrocket-image
Lender Processing Services (LPS) released its February Mortgage Monitor Report revealing that a huge backlog of foreclosures continues to exist despite a continued decline in delinquencies. The data also shows a 23 percent increase in Option ARM foreclosures over the last six months, far higher than any other product type.

The report cites three primary reasons for the enormous backlog in foreclosures:

– There are three times the number of loans deteriorating greater than 90+ days delinquent as compared to foreclosure starts;
– There are three times the number of foreclosure starts vs. foreclosure sales;
– Foreclosure inventory levels are over 30 times monthly foreclosure sale volume.

Option ARM foreclosures accounted for 18.8 percent of all foreclosures, a level the report notes, that was higher than sub-prime loans ever reached.

In addition, deterioration continues in the Non-Agency Prime segment. Both Jumbo and Conforming Non-Agency Prime loans showed increases in foreclosures and were the only product areas with increases in delinquencies.

LPS’ data also showed 22 percent of loans that were 90+ days delinquent 12 months ago are now current, which they attributed to banks’ loan modification efforts.

However, foreclosure timelines continued to be extended as the average foreclosure now has been delinquent for a record 537 days and a 30 percent of loans in foreclosure have not made a payment in two years.

Foreclosure inventories continue to grow as foreclosure starts decline and foreclosure suspensions, due to self-imposed moratoriums by mortgage servicers caused by paperwork scandals, slows the amount of foreclosures to market.

2010 originations peaked in Q4 2010, with government loans making up almost 87 percent of all originated loans. Prepayment rates (an indicator of refinance activity) have dropped sharply since, indicating that this is unlikely to continue into 2011.

Tags: LPS, Mortgage Monitor Report, foreclosure backlog, deteriorating loans, ARM foreclosures, sub-prime loans, delinquencies, loan modifications, foreclosure timelines

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Helpful Tools
Mortgage
Calculator

Estimate your monthly mortgage payment
Auto Loan
Calculator

Determine how much car you can afford before buying
Learn About
Mortgage Loans

Learn about the different types of home loans
15 Year vs 30 Year
Loan Comparison

Compare 15 year and 30 year mortgage loans
Todays Mortgage
Rates

See today's mortgage rates. Shop, compare and save.

March 29, 2011 (Jeff Alan)
mortgage-skyrocket-image
Lender Processing Services (LPS) released its February Mortgage Monitor Report revealing that a huge backlog of foreclosures continues to exist despite a continued decline in delinquencies. The data also shows a 23 percent increase in Option ARM foreclosures over the last six months, far higher than any other product type.

The report cites three primary reasons for the enormous backlog in foreclosures:

– There are three times the number of loans deteriorating greater than 90+ days delinquent as compared to foreclosure starts;
– There are three times the number of foreclosure starts vs. foreclosure sales;
– Foreclosure inventory levels are over 30 times monthly foreclosure sale volume.

Option ARM foreclosures accounted for 18.8 percent of all foreclosures, a level the report notes, that was higher than sub-prime loans ever reached.

In addition, deterioration continues in the Non-Agency Prime segment. Both Jumbo and Conforming Non-Agency Prime loans showed increases in foreclosures and were the only product areas with increases in delinquencies.

LPS’ data also showed 22 percent of loans that were 90+ days delinquent 12 months ago are now current, which they attributed to banks’ loan modification efforts.

However, foreclosure timelines continued to be extended as the average foreclosure now has been delinquent for a record 537 days and a 30 percent of loans in foreclosure have not made a payment in two years.

Foreclosure inventories continue to grow as foreclosure starts decline and foreclosure suspensions, due to self-imposed moratoriums by mortgage servicers caused by paperwork scandals, slows the amount of foreclosures to market.

2010 originations peaked in Q4 2010, with government loans making up almost 87 percent of all originated loans. Prepayment rates (an indicator of refinance activity) have dropped sharply since, indicating that this is unlikely to continue into 2011.

Tags: LPS, Mortgage Monitor Report, foreclosure backlog, deteriorating loans, ARM foreclosures, sub-prime loans, delinquencies, loan modifications, foreclosure timelines

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
HOW LOANRATENETWORK
LOAN CENTER WORKS
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
Helpful Tools

March 29, 2011 (Jeff Alan)
mortgage-skyrocket-image
Lender Processing Services (LPS) released its February Mortgage Monitor Report revealing that a huge backlog of foreclosures continues to exist despite a continued decline in delinquencies. The data also shows a 23 percent increase in Option ARM foreclosures over the last six months, far higher than any other product type.

The report cites three primary reasons for the enormous backlog in foreclosures:

– There are three times the number of loans deteriorating greater than 90+ days delinquent as compared to foreclosure starts;
– There are three times the number of foreclosure starts vs. foreclosure sales;
– Foreclosure inventory levels are over 30 times monthly foreclosure sale volume.

Option ARM foreclosures accounted for 18.8 percent of all foreclosures, a level the report notes, that was higher than sub-prime loans ever reached.

In addition, deterioration continues in the Non-Agency Prime segment. Both Jumbo and Conforming Non-Agency Prime loans showed increases in foreclosures and were the only product areas with increases in delinquencies.

LPS’ data also showed 22 percent of loans that were 90+ days delinquent 12 months ago are now current, which they attributed to banks’ loan modification efforts.

However, foreclosure timelines continued to be extended as the average foreclosure now has been delinquent for a record 537 days and a 30 percent of loans in foreclosure have not made a payment in two years.

Foreclosure inventories continue to grow as foreclosure starts decline and foreclosure suspensions, due to self-imposed moratoriums by mortgage servicers caused by paperwork scandals, slows the amount of foreclosures to market.

2010 originations peaked in Q4 2010, with government loans making up almost 87 percent of all originated loans. Prepayment rates (an indicator of refinance activity) have dropped sharply since, indicating that this is unlikely to continue into 2011.

Tags: LPS, Mortgage Monitor Report, foreclosure backlog, deteriorating loans, ARM foreclosures, sub-prime loans, delinquencies, loan modifications, foreclosure timelines

HOW LOANRATENETWORK
LOAN CENTER WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.