Posted on Tuesday, May 4, 2010
The latest numbers confirm a large pool of 7.39 million non-current and REO loans.
Home Affordable Modification Program (HAMP) is making a dent in the industry’s delinquency numbers, as evidenced in the improved level of loan cure rates as trial modifications are converted to official loan restructurings. But those overall numbers are still small.
In addition, elevated levels of early-stage cures – meaning loans than are less than 60 days delinquent – indicate a higher rate of self-cures as homeowners bring payments current on their own.
Even the 7.39 million nonperforming loans at the end of March is an improvement over the nearly 8.5 million loans the month before estimated to be in delinquency, foreclosure, or REO status. Overall, the number of non-current loans across the nation has declined over the past six months, but the still-elevated total represents hefty increases compared to a year ago. Total delinquencies, excluding foreclosures, decreased 10.3 percent from February to March 2010, however, the total represents a year-over-year increase of 15.7 percent.
Similarly, March’s foreclosure rate stands at 3.27 percent, representing a month-over-month decrease of 1.2 percent, but a year-over-year increase of 32.9 percent. The number of loans moving from seriously delinquent into foreclosure rose again in March, after hitting historic lows in February. DSNews