LPS' April Mortgage Monitor Report: Stabilization Clouded by Elevated Pool of Distressed Loans and Rate of New Delinquencies

90-day Default Rate Stable; Eight States Still Exceed Foreclosure Inventory National Average

Jun 01, 2010, 08:45 ET from Lender Processing Services, Inc.

JACKSONVILLE, Fla., June 1 /PRNewswire-FirstCall/ -- The Mortgage Monitor report released today by Lender Processing Services, Inc. (NYSE: LPS), a leading provider of mortgage performance data and analytics, indicated that signs of stabilization in the nation's home loan delinquency and foreclosure rates remain largely neutralized by the more than 7 million loans in distress.

According to the Mortgage Monitor report, the number of loans 90 or more days delinquent (including pre-sale foreclosure) declined 112,184 – from 4,186,627 to 4,074,443 – between March and April, with the total number of non-current U.S. loans plus REO just over 7.3 million (extrapolated to represent total mortgage market).

Conversely, deterioration ratios remain high, with two loans rolling to a "worse" status for every one loan that has improved and the overall volume of loans moving from delinquent to current status declined to a three-month low supported primarily by "artificial cures" associated with HAMP modifications. In addition, newly delinquent loans (current at year-end and 60 or more days delinquent as of April) have declined from the 2009 levels but still remain extremely high from a historical perspective, particularly within prime product.

Other key results from LPS' latest Mortgage Monitor report include:

Total U.S. loan delinquency rate:

8.99 percent

Total U.S. foreclosure inventory rate:

3.18 percent

Total U.S. non-current* loan rate:

12.17 percent

States with most non-current* loans:

Florida, Nevada, Mississippi, Arizona, Georgia, California, Illinois, New Jersey, Michigan and Rhode Island

States with the fewest non-current* loans:

North Dakota, South Dakota, Wyoming, Alaska, Montana, Nebraska, Vermont, Colorado, Iowa and Minnesota

*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 nearly 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 dollar volume are serviced using LPS' Mortgage Servicing Package (MSP). 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.



RELATED LINKS

http://www.lpsvcs.com