It’s quite evident that the foreclosure backlog is growing, as 2.1 million mortgages are at least 90 days late, but not yet in foreclosure, according to the December Mortgage Monitor report from Lending Processing Services.
The company noted that while loans in this category have declined, the number of loans moving to seriously delinquent status beyond 90 days is still far outpacing the number of foreclosure starts.
Additionally, the average borrower in foreclosure hasn’t made a mortgage payment for 507 days, which is up from 319 days back in January 2009.
The average days delinquent for a mortgage characterized as 90+ days late is 334 days…that’s more than times what it should be.
Foreclosure inventory is currently 7.8 times the historical average and rising, while the total number of delinquent loans is nearly twice historical averages.
The total U.S. noon-current loan rate is now 12.98 percent, which includes both foreclosures and delinquencies.
Florida leads the nation in most non-current loans, along with Nevada, Mississippi, Georgia, and New Jersey.
Nearly All Mortgages Government Backed
LPS also noted that loan origination activity reached its 2010 high in November.
FHA loan origination volume declined from its peak, but the share of agency loans (those backed by Fannie and Freddie) increased, and now 95 percent of all new mortgages are government supported.