Lender Processing Services' December 2009 Mortgage Monitor Report Reveals One in Every 7.5 Properties Behind on Payments or in Foreclosure

5.01 Percent of Loans Rolled to More Delinquent Status vs. 1.52 Percent That Improved

Jan 11, 2010, 15:50 ET from Lender Processing Services, Inc.

JACKSONVILLE, Fla., Jan. 11 /PRNewswire-FirstCall/ -- The December Mortgage Monitor report, released by Lender Processing Services, Inc. (NYSE: LPS), a leading provider of mortgage performance data and analytics, showed that one in every 7.5 homeowners in the United States is either behind on mortgage payments or in foreclosure. The December 2009 Mortgage Monitor report is an in-depth summary of mortgage industry performance indicators based on data collected as of November 30, 2009.

Total delinquencies, excluding foreclosures, increased to a record high 9.97 percent, representing a month-over-month increase of 5.46 percent and a year-over-year increase of 21.29 percent. Loans rolling to a more delinquent status totaled 5.01 percent compared to 1.52 percent of loans that improved. Of loans that were current in December 2008, 4.37 percent were either 60 or more days delinquent or in foreclosure by the end of November 2009, a rate higher than any other year for the same period.

Foreclosure inventories also continued to climb to new highs with November's foreclosure rate at 3.19% - a month-over-month increase of 1.46 percent and a year-over-year increase of 81.41 percent. Compared to 2005 levels, foreclosure inventories across all loans are now nearly seven times higher, while jumbo loan foreclosure inventories are nearly 100 times more than levels four years ago.

Foreclosure starts continued to decline as a result of loss mitigation efforts like the federal government's Home Affordable Modification Program (HAMP) and elevated delinquent loan volumes. The reduction in foreclosure starts, combined with the steady increase in the number of seriously delinquent loans, has resulted in an ever-growing "shadow" inventory of troubled properties.

Other key results from LPS' December Mortgage Monitor include:


    Total U.S. loan delinquency
     rate:                           10.0 percent
    Total U.S. foreclosure
     inventory rate:                 3.2 percent
    Total U.S. non-current* loan
     rate:                           13.2 percent
                                      Florida, Nevada, Mississippi, Arizona,
    States with most non-current*     Georgia, California, Michigan,
     loans:                           Indiana, Ohio and Illinois
                                      North Dakota, South Dakota, Alaska,
    States with fewest non-           Wyoming, Montana, Nebraska, Vermont,
     current* loans:                  Colorado, Oregon and Iowa

*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.

Note: Totals based on LPS Applied Analytics' loan-level database of mortgage assets.

LPS manages the nation's leading repository of loan-level residential mortgage data and performance information from approximately 40 million loans across the spectrum of credit products. The company's research experts carefully analyze this data to produce dozens of charts and graphs that reflect trend and point-in-time observations for LPS' monthly Mortgage Monitor Report.

To review the full report, listen to a presentation of the report or access an executive summary, visit http://www.lpsvcs.com/NEWSROOM/INDUSTRYDATA/Pages/default.aspx.

About Lender Processing Services

Lender Processing Services, Inc. (LPS) is a leading provider of integrated technology and services to the mortgage and real estate industries. LPS offers solutions that span the mortgage continuum, including lead generation, origination, servicing, workflow automation (Desktop), portfolio retention and default, augmented by the company's award-winning customer support and professional services. Approximately 50 percent of all U.S. mortgages by volume are serviced using LPS' Mortgage Servicing Package (MSP). In fact, many of the nation's top servicers rely on MSP, including eight of the top 10 and 14 of the top 20. LPS also offers proprietary mortgage and real estate data and analytics for the mortgage and capital markets industries. For more information about LPS, visit www.lpsvcs.com.

SOURCE Lender Processing Services, Inc.



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