Pre-Housing Bust Loans Account for Almost Two-Thirds of Delinquencies
Pre-Housing Bust Loans Account for Almost Two-Thirds of Delinquencies
Pre-Housing Bust Loans Account for Almost Two-Thirds of Delinquencies
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July 26, 2011 (Jeff Alan)

Mortgage loans that were originated in 2005 to 2007 account for nearly two-thirds of past due balances according to Equifax. And although 30+ day delinquencies have been on the decline, roll rates for 60+ and 90+ day delinquencies continue to rise.

Lender loan write-offs for first mortgages, home equity installment loans, and home equity revolving accounts reached $304.6 billion in 2010. Equifax’s analysis suggests that number will continue to climb in the future with no signs of when it will peak.

By comparison, the combined amount of loan write-offs in 2006 and 2007 totaled only $126.7 billion.

Equifax estimates that as of May 2011, there are approximately $319.7 billion in first mortgages in the initial stages of the foreclosure process that were originated in 2006 and 2007. Not surprising considering the amount of sub-prime lending activity that occurred at that time.

Eventually, many of these homes will enter into the shadow inventory and depending on the state, will begin entering the housing market as real estate owned (REO) properties in one to three years.

At the end of May 2011, REO properties were three percent of all first mortgages totaling $21.8 billion.

Equifax says REO properties represent a major roadblock to economic recovery as REO rates remain high while lenders struggle to divest themselves of properties through auctions and short sales.

Foreclosure completion rates are at 1.45 percent, almost at the same level as bankruptcies which are currently at a rate of 1.6 percent. Equifax says that the similar rates suggest that the majority of REO properties are a result of bankruptcy proceedings.

“Shadow inventory and real estate owned properties are still playing a dominant role in today’s mortgage market and slowing the pace of economic recovery. While we are seeing stabilization across multiple sectors of lending, there remains a significant volume of delinquent first mortgage loans, which has slowed the foreclosure process. Until these foreclosures are processed, the mortgage market will continue to impact economic growth,” said Craig Crabtree, senior vice president and general manager, Equifax Mortgage Services

Tags: Equifax, pre-housing bust, loan delinquencies, first mortgages, home quity installment loans, home equity revolving accounts, loan write-offs, REO, mortgage market

Source:
Equifax

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Mortgage
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Estimate your monthly mortgage payment
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Loan Comparison

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July 26, 2011 (Jeff Alan)

Mortgage loans that were originated in 2005 to 2007 account for nearly two-thirds of past due balances according to Equifax. And although 30+ day delinquencies have been on the decline, roll rates for 60+ and 90+ day delinquencies continue to rise.

Lender loan write-offs for first mortgages, home equity installment loans, and home equity revolving accounts reached $304.6 billion in 2010. Equifax’s analysis suggests that number will continue to climb in the future with no signs of when it will peak.

By comparison, the combined amount of loan write-offs in 2006 and 2007 totaled only $126.7 billion.

Equifax estimates that as of May 2011, there are approximately $319.7 billion in first mortgages in the initial stages of the foreclosure process that were originated in 2006 and 2007. Not surprising considering the amount of sub-prime lending activity that occurred at that time.

Eventually, many of these homes will enter into the shadow inventory and depending on the state, will begin entering the housing market as real estate owned (REO) properties in one to three years.

At the end of May 2011, REO properties were three percent of all first mortgages totaling $21.8 billion.

Equifax says REO properties represent a major roadblock to economic recovery as REO rates remain high while lenders struggle to divest themselves of properties through auctions and short sales.

Foreclosure completion rates are at 1.45 percent, almost at the same level as bankruptcies which are currently at a rate of 1.6 percent. Equifax says that the similar rates suggest that the majority of REO properties are a result of bankruptcy proceedings.

“Shadow inventory and real estate owned properties are still playing a dominant role in today’s mortgage market and slowing the pace of economic recovery. While we are seeing stabilization across multiple sectors of lending, there remains a significant volume of delinquent first mortgage loans, which has slowed the foreclosure process. Until these foreclosures are processed, the mortgage market will continue to impact economic growth,” said Craig Crabtree, senior vice president and general manager, Equifax Mortgage Services

Tags: Equifax, pre-housing bust, loan delinquencies, first mortgages, home quity installment loans, home equity revolving accounts, loan write-offs, REO, mortgage market

Source:
Equifax

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
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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.
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July 26, 2011 (Jeff Alan)

Mortgage loans that were originated in 2005 to 2007 account for nearly two-thirds of past due balances according to Equifax. And although 30+ day delinquencies have been on the decline, roll rates for 60+ and 90+ day delinquencies continue to rise.

Lender loan write-offs for first mortgages, home equity installment loans, and home equity revolving accounts reached $304.6 billion in 2010. Equifax’s analysis suggests that number will continue to climb in the future with no signs of when it will peak.

By comparison, the combined amount of loan write-offs in 2006 and 2007 totaled only $126.7 billion.

Equifax estimates that as of May 2011, there are approximately $319.7 billion in first mortgages in the initial stages of the foreclosure process that were originated in 2006 and 2007. Not surprising considering the amount of sub-prime lending activity that occurred at that time.

Eventually, many of these homes will enter into the shadow inventory and depending on the state, will begin entering the housing market as real estate owned (REO) properties in one to three years.

At the end of May 2011, REO properties were three percent of all first mortgages totaling $21.8 billion.

Equifax says REO properties represent a major roadblock to economic recovery as REO rates remain high while lenders struggle to divest themselves of properties through auctions and short sales.

Foreclosure completion rates are at 1.45 percent, almost at the same level as bankruptcies which are currently at a rate of 1.6 percent. Equifax says that the similar rates suggest that the majority of REO properties are a result of bankruptcy proceedings.

“Shadow inventory and real estate owned properties are still playing a dominant role in today’s mortgage market and slowing the pace of economic recovery. While we are seeing stabilization across multiple sectors of lending, there remains a significant volume of delinquent first mortgage loans, which has slowed the foreclosure process. Until these foreclosures are processed, the mortgage market will continue to impact economic growth,” said Craig Crabtree, senior vice president and general manager, Equifax Mortgage Services

Tags: Equifax, pre-housing bust, loan delinquencies, first mortgages, home quity installment loans, home equity revolving accounts, loan write-offs, REO, mortgage market

Source:
Equifax

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.