You are on page 1of 33

ONE SOURCE. POWERFUL SOLUTIONS.

: : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : :

LPS Mortgage Monitor


August 2011 Mortgage Performance Observations

Data as of July, 2011 Month-end

Lender Processing Services

July 2011 First Look McDash Online Release: August 14th

Lender Processing Services

Market Overview: 4.1 million loans are 90+ days delinquent or in foreclosure

Lender Processing Services

DQs are almost 2x, and foreclosures are 8x pre-crisis levels

*Based on 1995 2005 performance

Lender Processing Services

Florida is the only state with fewer delinquent loans than foreclosures

Lender Processing Services

The inflow of new problem loans remains subdued

Lender Processing Services

Only 25% of new 30 day delinquencies are first time

Lender Processing Services

Increased foreclosure removals are impacting delinquency rates

Lender Processing Services

Modification dominated, late stage cures continue to decline

Lender Processing Services

Over 40% of 90+ DQ loans have not made a payment in over a year

Lender Processing Services

10

Foreclosures have been initiated at the fastest pace for GSE loans

Lender Processing Services

11

GSE share of 90+ delinquencies has dropped considerably since Jan-10

Lender Processing Services

12

Loans deteriorating over 90 days still outnumber foreclosure starts 2:1

Lender Processing Services

13

First time foreclosure starts near three year lows

Lender Processing Services

14

Most of the foreclosure outflow is back into delinquency

Lender Processing Services

15

Foreclosure starts outnumber sales by a factor of almost 3:1

Lender Processing Services

16

Foreclosure sales are down across all investors

Lender Processing Services

17

Moratorium impact has dropped but remains very high in judicial states

Lender Processing Services

18

The pipeline ratio in judicial states is more than 3 times that of non-judicial

Lender Processing Services

19

Originations remain near three year lows

Lender Processing Services

20

More borrowers are choosing 15 year fixed rate terms

Lender Processing Services

21

Even at the state level, conforming limit reduction impact is small

Lender Processing Services

22

Prepayment / refi rates remained low through July

Lender Processing Services

23

ONE SOURCE. POWERFUL SOLUTIONS. : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : :

LPS Applied Analytics: Mortgage Monitor Disclosures


Includes product definition and extrapolation methodology

Lender Processing Services

24

Disclosure Page: Product Definitions as of June month-end Data

*Conforming limits do not account for temporary or high-cost area increases.

Lender Processing Services

25

Disclosure Page: Metrics Definitions

Total Active Count: All active loans as of month-end including loans in any state of delinquency or foreclosure. Post-sale loans and loans in REO are excluded from the total active count. Delinquency Statuses (30, 60, 90+, etc): All delinquency statuses are calculated using the MBA methodology based on the payment due date provided by the servicer. Loans in foreclosure are reported separately and are not included in the MBA days delinquent. 90 Day Defaults: Loans that were less than 90 days delinquent in the prior month and were 90 days delinquent, but not in foreclosure, in the current month. Foreclosure Inventory: The servicer has referred the loan to an attorney for foreclosure. Loans remain in foreclosure inventory from referral to sale. Foreclosure Starts Any active loan that was not in foreclosure in the prior month that moves into foreclosure inventory in the current month. Non-Current: Loans in any stage of delinquency or foreclosure. Foreclosure Sale / New REO: Any loan that was in foreclosure in the prior month that moves into post-sale status or is flagged as a foreclosure liquidation. REO: The loan is in post-sale foreclosure status. Listing status is not a consideration, this includes all properties on and off the market. Deterioration Ratio: The ratio of the percentage of loans deteriorating in delinquency status vs. those improving.

Lender Processing Services

26

Disclosure Page: Product Shifts pre and post-June 2010 Report

The table below contains the counts using the definitions implemented with the June 2010 and the change in count and percentage from those used prior. Counts are based on May 2010 Data Active Loans (excludes post-sale and paid in full)

Lender Processing Services

27

Disclosure Page: Product Shift Matrix, pre and post-June 2010 Report

Counts are based on May 2010 Data Active Loans (excludes post-sale and paid in full)

Lender Processing Services

28

Disclosure Page: Industry Extrapolations pre and post-June 2010 Report

Mortgage metrics reports produced prior to June 2010 used the following extrapolation method when estimating full industry numbers:
Active loans (non-REO) are extrapolated based on a 70% market-share assumption. REO loans prior to March 2009 are extrapolated based on a 40% market-share assumption REO loans from March 2009 on contain an additional adjustment for under-reporting by a specific client.

Mortgage metrics reports produced from June 2010 on extrapolate based on vintage and product. Product coverage is highlighted below. Loan counts and extrapolation are based on May 2010 active loan counts (excludes post-sale and paid in full):

Lender Processing Services

29

Performance Statistics Changes MBA Delinquency Before = Unextrapolated Values from prior to June 2010 Month-end data After Unextrapolated = Actual values from servicing data reflecting removal of 2nds After Extrapolated = Changes with June 2010 data; new products and extrapolations

Lender Processing Services

30

Performance Statistics Changes Foreclosure Inventory Before = Unextrapolated Values from prior to June 2010 Month-end data After Unextrapolated = Actual values from servicing data reflecting removal of 2nds After Extrapolated = Changes with June 2010 data; new products and extrapolations

Lender Processing Services

31

Performance Statistics Changes: Foreclosure Starts

Lender Processing Services

32

Performance Statistics Changes: Database Counts New Extrapolation and Product Definitions implemented with the June 2010 monthend data.

Lender Processing Services

33

You might also like