LPS' Mortgage Monitor Report Shows Foreclosure Starts Rose Nearly 20 Percent in August, But Down More Than 12 Percent From Same Time Last Year

New Problem Loans Less Than Half 2009 Peak

Oct 03, 2011, 17:41 ET from Lender Processing Services, Inc.

JACKSONVILLE, Fla., Oct. 3, 2011 /PRNewswire/ -- The August Mortgage Monitor report released by Lender Processing Services, Inc. (NYSE: LPS) shows that foreclosure starts were up in August by nearly 20 percent compared to July 2011 results, with first-time foreclosure starts reaching 2011 highs. Overall, foreclosure starts remained down more than 12 percent from this time last year. At the same time, of the approximately 4 million loans that are either 90 or more days delinquent or in foreclosure, the number in the 90 or more days category has shrunk to levels not seen since 2008.

The August data also showed that, of loans that were current six months prior, 1.4 percent had become seriously delinquent, a rate of less than half of the peak of 2.9 percent in 2009. At the same time, "first-time" delinquencies (new problem loans that had never been delinquent before) accounted for approximately a quarter of total new delinquencies – further signs of an improving trend for new problem loans. However, of the nearly 46 million loans that were current as of the end of August, 23 percent were still at risk as a result of negative equity – a leading indicator of a borrower's propensity to default.

August results showed an all-time high in the number of loans shifting from foreclosure back into delinquent status, suggesting that process reviews and potential loss mitigation activity are continuing. As a result, foreclosure timelines continue to increase, with the average loan in foreclosure having been delinquent for a record 611 days. Average delinquencies in non-judicial states continue to be about six months shorter at time of foreclosure sale compared to judicial states, where backlogs continue to be extremely high.

As reported in LPS' August 2011 First Look release, other key results from LPS' latest Mortgage Monitor report include:

Total U.S. loan delinquency rate:

8.13%

Month-over-month change in delinquency rate:

-2.5%

Total U.S. foreclosure pre-sale inventory rate:

4.11%

Month-over-month change in foreclosure pre-sale inventory rate:

0.1%

States with highest percentage of non-current* loans:

FL, MS, NV, NJ, IL

States with the lowest percentage of non-current* loans:

ND, SD, AK, WY, MT

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

Notes:

(1) Totals are extrapolated based on LPS Applied Analytics' loan-level database of mortgage assets.

(2) All whole numbers are rounded to the nearest thousand.

About the Mortgage Monitor

LPS manages the nation's leading repository of loan-level residential mortgage data and performance information on nearly 40 million loans across the spectrum of credit products. The company's research experts carefully analyze this data to produce a summary supplemented by dozens of charts and graphs that reflect trend and point-in-time observations for LPS' monthly Mortgage Monitor Report. To review the full report, 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, services and mortgage performance data and analytics 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.



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