Introduction
The CoreLogic Loan Performance Insights report features an interactive view of our mortgage performance analysis through September 2021.
Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To more comprehensively monitor mortgage performance, CoreLogic examines all stages of delinquency as well as transition rates that indicate the percent of mortgages moving from one stage of delinquency to the next.
The report is published monthly with coverage at the national, state and Core Based Statistical Area (CBSA)/Metro level and includes transition rates between states of delinquency and separate breakouts for 120+ day delinquency.
“The economic recovery has pushed down the percent of delinquent borrowers to the lowest level since the pandemic began. The number of borrowers past due on their mortgage doubled between March and May 2020. The past due rate in September 2021 was the lowest since March 2020.”
– Dr. Frank Nothaft
Chief Economist for CoreLogic
30 Days or More Delinquent – National
In September 2021, 3.9% of mortgages were delinquent by at least 30 days or more including those in foreclosure.
This represents a 2.4-percentage point decrease in the overall delinquency rate compared with September 2020.
Helpful Home Equity
Mortgage delinquency continued to decline in September, while home equity has soared, according to CoreLogic’s most recent Home Equity Report. Despite nearly one-in-two delinquent borrowers being behind on their mortgages by six months or more, high levels of equity assure that relatively few of these borrowers will fall into foreclosure as they exit forbearance. Additionally, the U.S. unemployment rate has continued to fall over the course of the year and in November 2021 was 4.2%, 10.6 percentage points lower than the rate in April 2020. Employment and income growth provide the means for borrowers to remain current on their mortgages.
“Record home equity levels have been a boon to many homeowners navigating the cross currents of the pandemic. Not only have homeowners used this equity to fuel a record level of home improvements and renovation, it has proven to be a vital factor in helping families ward off foreclosure, pay down existing debt and weather changing market conditions.”
– Frank Martell
President and CEO of CoreLogic
Loan Performance – National
CoreLogic examines all stages of delinquency to more comprehensively monitor mortgage performance.
The nation’s overall delinquency rate for September was 3.9%. The rate for early-stage delinquencies – defined as 30 to 59 days past due – was 1.1% in September 2021, down from 1.5% in September 2020. The share of mortgages 60 to 89 days past due was 0.3%, down from 0.7% in September 2020. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 2.4%, down from 4.2% in September 2020.
As of September 2021, the foreclosure inventory rate was 0.2%, down from 0.3% in September 2020
Transition Rates – National
CoreLogic examines all stages of delinquency as well as transition rates that indicate the percent of mortgages moving from one stage of delinquency to the next.
The share of mortgages that transitioned from current to 30-days past due was 0.6%, down from 0.8% in September 2020.
Overall Delinquency – State
Overall delinquency is defined as 30-days or more past due, including those in foreclosure.
In September 2021, all states logged year-over-year declines in overall delinquency rate. The states with the largest declines were Nevada (down 3.7 percentage points); Florida (down 3.6 percentage points); and New Jersey (down 3.6 percentage points).
Serious Delinquency – Metropolitan Areas
Serious delinquency is defined as 90 days or more past due including loans in foreclosure.
There were 0 metropolitan areas where the Serious Delinquency Rate increased.
There were 384 metropolitan areas where the Serious Delinquency Rate remained the same or decreased.
Summary
Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To more comprehensively monitor mortgage performance, CoreLogic examines all stages of delinquency as well as transition rates that indicate the percent of mortgages moving from one stage of delinquency to the next.
For ongoing housing trends and data, visit the CoreLogic Insights Blog: www.corelogic.com/insights.
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Methodology
The data in the CoreLogic Loan Performance Insights report represents foreclosure and delinquency activity reported through September 2021.
The data in this report accounts for only first liens against a property and does not include secondary liens. The delinquency, transition and foreclosure rates are measured only against homes that have an outstanding mortgage. Homes without mortgage liens are not subject to foreclosure and are, therefore, excluded from the analysis. Approximately one-third of homes nationally are owned outright and do not have a mortgage. CoreLogic has approximately 75% coverage of U.S. foreclosure data.
About the CoreLogic Consumer Housing Sentiment Study
3,000+ consumers were surveyed by CoreLogic via Qualtrics. The study is an annual pulse of U.S. housing market dynamics concentrated on consumers looking to purchase a home, consumers not looking to purchase a home, and current mortgage holder. The survey was conducted in April 2021 and hosted on Qualtrics.
The survey has a sampling error of ~3% at the total respondent level with a 95% confidence level.
Source: CoreLogic
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About CoreLogic
CoreLogic is a leading global property information, analytics and data-enabled solutions provider. The company’s combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.
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