Market Overview

Early-Stage Mortgage Delinquencies Dip Again in November as Hurricanes' Impact Wanes

Share:
  • Overall Mortgage Delinquency Rate Fell 0.1 Percentage Points Year
    Over Year
  • Foreclosure Rate Declined 0.2 Percentage Points Year Over Year
  • Transition Rates for 60-Day and 90-Day Delinquency Rose Sharply in
    Texas and Florida Likely Due to 2017 Hurricanes

CoreLogic® (NYSE:CLGX), a leading global property
information, analytics and data-enabled solutions provider, today
released its monthly Loan
Performance Insights Report
which shows that, nationally, 5.1
percent of mortgages were in some stage of delinquency (30 days or more
past due including those in foreclosure) in November 2017. This
represents a 0.1 percentage point year-over-year decline in the overall
delinquency rate compared with November 2016 when it was 5.2 percent.

This press release features multimedia. View the full release here:
http://www.businesswire.com/news/home/20180213005344/en/

CoreLogic National Overview of Mortgage Loan Performance, featuring November 2017 Data (Graphic: Bus ...

CoreLogic National Overview of Mortgage Loan Performance, featuring November 2017 Data (Graphic: Business Wire)

As of November 2017, the foreclosure inventory rate, which measures the
share of mortgages in some stage of the foreclosure process, was 0.6
percent, down 0.2 percentage points from 0.8 percent in November 2016.
The foreclosure inventory rate has held steady at 0.6 percent since
August 2017, the lowest level since June 2007 when it was also at 0.6
percent. This past November's foreclosure inventory rate was the lowest
for the month of November in 11 years, since it was also 0.6 percent in
November 2006.

Measuring early-stage delinquency rates is important for analyzing the
health of the mortgage market. To monitor mortgage performance
comprehensively, CoreLogic examines all stages of delinquency as well as
transition rates, which indicate the percentage of mortgages moving from
one stage of delinquency to the next.

The rate for early-stage delinquencies, defined as 30-59 days past due,
was 2.2 percent in November 2017, down 0.1 percentage points from 2.3
percent in October 2017 and unchanged from 2.2 percent in November 2016.
The share of mortgages that were 60-89 days past due in November 2017
was 0.9 percent, unchanged from October 2017 and up from 0.7 percent in
November 2016. The serious delinquency rate, reflecting loans 90 days or
more past due, was 2.0 percent in November 2017, up from 1.9 percent in
October 2017 and down from 2.3 percent in November 2016. Prior to
November 2017, the serious delinquency rate had held steady for five
consecutive months at 1.9 percent—the lowest level for any month since
October 2007 when it was also 1.9 percent.

"The effects of Hurricanes Harvey, Irma and Maria appear clearly in our
mortgage delinquency report," said Dr. Frank Nothaft, chief economist
for CoreLogic. "Serious delinquency rates are up sharply in Texas and
Florida compared with a year ago, while lower in all other states except
Alaska. In Puerto Rico, the serious delinquency rate jumped to 6.3
percent in November, up 2.7 percentage points compared with a year
before. In the Miami metropolitan area, serious delinquency was up more
than one-third from one year earlier to 5.1 percent, and it more than
doubled to 4.6 percent in the Houston area."

Since early-stage delinquencies can be volatile, CoreLogic also analyzes
transition rates. The share of mortgages that transitioned from current
to 30 days past due was 1 percent in November 2017, down from 1.1
percent in October 2017 and unchanged from 1 percent in November 2016.
By comparison, in January 2007, just before the start of the financial
crisis, the current-to-30-day transition rate was 1.2 percent and it
peaked in November 2008 at 2 percent.

"Transition rates for 60-day and 90-day delinquency, while stable across
most of the country, were up sharply in many areas impacted by the 2017
hurricanes," said Frank Martell, president and CEO of CoreLogic. "In
many of the harder-hit regions, such as the Houston and Miami
metropolitan areas, housing stock availability has taken a hit as many
homes were damaged and are no longer habitable. As a result, we expect
to see further upward pressure on prices and rents for habitable homes,
which will continue to erode affordability."

For ongoing housing trends and data, visit the CoreLogic Insights Blog: www.corelogic.com/blog.

Methodology

The data in this report represents foreclosure and delinquency activity
reported through November 2017.

The data in this report accounts for only first liens against a property
and does not include secondary liens. The delinquency, transition and
foreclosure rates are measured only against homes that have an
outstanding mortgage. Homes without mortgage liens are not typically
subject to foreclosure and are, therefore, excluded from the analysis.
Approximately one-third of homes nationally are owned outright and do
not have a mortgage. CoreLogic has approximately 85 percent coverage of
U.S. foreclosure data.

Source: CoreLogic

The data provided is for use only by the primary recipient or the
primary recipient's publication or broadcast. This data may not be
re-sold, republished or licensed to any other source, including
publications and sources owned by the primary recipient's parent company
without prior written permission from CoreLogic. Any CoreLogic data used
for publication or broadcast, in whole or in part, must be sourced as
coming from CoreLogic, a data and analytics company. For use with
broadcast or web content, the citation must directly accompany first
reference of the data. If the data is illustrated with maps, charts,
graphs or other visual elements, the CoreLogic logo must be included on
screen or website. For questions, analysis or interpretation of the
data, contact Lori Guyton at lguyton@cvic.com
or Bill Campbell at bill@campbelllewis.com.
Data provided may not be modified without the prior written permission
of CoreLogic. Do not use the data in any unlawful manner. This data is
compiled from public records, contributory databases and proprietary
analytics, and its accuracy is dependent upon these sources.

About CoreLogic

CoreLogic (NYSE:CLGX) is a leading global property information,
analytics and data-enabled solutions provider. The company's combined
data from public, contributory and proprietary sources includes over 4.5
billion records spanning more than 50 years, providing detailed coverage
of property, mortgages and other encumbrances, consumer credit, tenancy,
location, hazard risk and related performance information. The markets
CoreLogic serves include real estate and mortgage finance, insurance,
capital markets, and the public sector. CoreLogic delivers value to
clients through unique data, analytics, workflow technology, advisory
and managed services. Clients rely on CoreLogic to help identify and
manage growth opportunities, improve performance and mitigate risk.
Headquartered in Irvine, Calif., CoreLogic operates in North America,
Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.

CORELOGIC and the CoreLogic logo are trademarks of CoreLogic, Inc.
and/or its subsidiaries.

View Comments and Join the Discussion!