A press release from LPS' Mortgage Monitor Report shows Foreclosure Inventory Rising for 5th Straight Month
The November Mortgage Monitor report released by Lender Processing Services, Inc. (LPS) shows that the volume of loans moving to REO continued to drop as moratoria further delayed foreclosure sales. While the 90+ delinquency category has steadily declined, the number of loans moving to seriously delinquent status beyond 90 days far outpaced the number of foreclosure starts. Nearly 2.2 million loans are 90 days or more delinquent but not yet in foreclosure.Charts From The Report
Foreclosure inventories also continued to rise for the fifth straight month as delinquent accounts are referred for foreclosure, but the sale of foreclosure properties continued to decline. When compared to January 2008 levels, the foreclosure inventory of Jumbo Prime loans is nearly seven times higher; the inventory of Agency Prime loans is nearly six times higher; and the foreclosure inventory of Option ARM loans is approaching five times the inventory in January 2008.
The report also shows that one-third of loans that are 90 days or more delinquent have not made a payment in a year; however, the number of new problem loans declined nearly 5.4 percent from October, which is opposite of the seasonality trend that typically impacts new delinquencies this time of year. Self-cures for loans one to two months delinquent increased in November to a six-month high.
In the month of November, 261,153 loans were referred to foreclosure, which represents a 0.7% month-over-month decline. The total number of delinquent loans is nearly 2.1 times historical averages - and foreclosure inventory is currently at 7.7 times historical averages.
As reported in LPS' First Look release, other key results from LPS' latest Mortgage Monitor report include:
- Total U.S. loan delinquency rate: 9.02 percent
- Total U.S. foreclosure inventory rate: 4.08 percent
- Total U.S. non-current* loan rate: 13.10 percent
- States with most non-current* loans: Florida, Nevada, Mississippi, Georgia, New Jersey
- States with fewest non-current* loans: North Dakota, South Dakota, Alaska, Wyoming, Montana
The report is 34 pages long. Inquiring minds may wish to give it a closer look. Here are a few select charts.
click on any chart for sharper image
Delinquent and Foreclosure Rates by Month
Total Delinquency Percent Excluding Foreclosures
Total Foreclosure Percent By Product
Foreclosure Increase Compared to January 2008
Loan Cures
Serious Delinquencies
Foreclosure Starts vs. Serious Delinquencies
While there are some welcome trends in direction, actual foreclosures are lagging. The pent-up need to foreclose is huge.
Moreover, mortgage rates have rising nearly a full percentage point in the last 45 days. This will put a damper on already depressed home sales, making it harder to unload inventory.
Look for months of inventory to soar in the upcoming months with continued declines in home prices. Contrary to what most think, falling prices are a good thing. Home prices need to fall to a point low enough where genuine demand kicks in.
Foreclosure moratoriums are counterproductive and exacerbate existing problems.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List
I generally agree with yoru statement, all the tricks the FED did to print hosuing dollars are done now, now people have to bring real money, and that means wages. However I disagree with statement "businesses competing with foreign wages CANNOT pay higher wages to American workers". Businesses overpay their CEOs and upper management all the time (boards are made up of cronies, not directors working in best interest of stockowners) and big US businesses are generally making high profits and have record cash reserves. So businesses CAN afford to pay workers high wages, but rather, they simply WON'T because they do not have to (no laws, unions etc to force them) and the WON'T because unlike the waste of over-priced salaries at high-end of coroporate ladders, business are not so stupid and wasteful and low-end and they keep low and middle workers wages as low as they can or they outsource.
But just so you know in real world there is an alternative ( not one you will ever see in US due to our politics and people assumptions like yours) look at Germany. They are an exporting machine. Their companies are very competitive in world market AND their worker wages and benefits are much higher than US. They have higher horuly salaries, their workers get 6 weeks vacation from get go, etc.. Also, they are fairly heavily regulated, their companies are held to high safety standards, high worker fairness standards, and tough environmental standards and also their companies do a lot with expensive alternative energy.
So in my mind there are at least two ways to for a countries companies to be competitve on world market, China or Germany, the only option is NOT China and depressed wages and weak currency.
Again and again, I see smart people assuming we must just do a China to compete, low wages, weak currency, trash the environment, peel back regulations that keep workers safe and keep work place fair. Its like Germany's example does not enter our consciousness. No way we can have a strong social safety net, treat enviroment well, have a strong currency, pay workers well, regulate businesses to ensure fairness and still compete, pay not attention to Germany.
It may not be easy for US to replicate what is working for Germany, primarily simply because most in US media and culture has it so we don't even know it that at least one coutnry is already proven it is possible, but it is crazy not to at least look at what they are doing and see if maybe we could strive for something closer to them. Germany competes and grows and German workers benefit. Germans model is very good for the common wealth, and yet, all we can fixate on is China.
We see same phenomen in business. There are some companies that are very successful and treat their workers much better than average, while other companies see their only way to success is to treat low end workers as badly as possible and to overcompensate upper management. See simply Costco vs. Sam's club.
Stop self-limiting, we can be a globally competitive country and have a solid middle class and have clean air and water, safe workplaces. But we won't if we let crony upper management of US companies decide everything in their interest, because clearly, sh%^ting on workers and over-compensating themselves and their friends, corrupting our government for their purposes is what they will keep doing unless we fight for something better.
robert shumake detroit
Movie <b>News</b> Quick Hits: Bigfoot to get the 'Avatar' Treatment <b>...</b>
A leaked costume test from MGM's completed-but-shelved remake of 1984's 'Red Dawn' has found its way online. It's not much, but thanks to MGM's.
Opinion: Can Oprah Help Restore Civility? - AOL <b>News</b>
Oprah began her new cable television network -- OWN -- at noon on New Year's Day, a network dedicated to the total and complete absence of mean-spiritedness.
Are Korea's “Bending” away from Bluster? « Liveshots
LONDON After a 2010 that saw the Korean peninsula edge towards the brink of nuclear Armageddon,
robert shumake detroit
Movie <b>News</b> Quick Hits: Bigfoot to get the 'Avatar' Treatment <b>...</b>
A leaked costume test from MGM's completed-but-shelved remake of 1984's 'Red Dawn' has found its way online. It's not much, but thanks to MGM's.
Opinion: Can Oprah Help Restore Civility? - AOL <b>News</b>
Oprah began her new cable television network -- OWN -- at noon on New Year's Day, a network dedicated to the total and complete absence of mean-spiritedness.
Are Korea's “Bending” away from Bluster? « Liveshots
LONDON After a 2010 that saw the Korean peninsula edge towards the brink of nuclear Armageddon,
robert shumake detroit
A press release from LPS' Mortgage Monitor Report shows Foreclosure Inventory Rising for 5th Straight Month
The November Mortgage Monitor report released by Lender Processing Services, Inc. (LPS) shows that the volume of loans moving to REO continued to drop as moratoria further delayed foreclosure sales. While the 90+ delinquency category has steadily declined, the number of loans moving to seriously delinquent status beyond 90 days far outpaced the number of foreclosure starts. Nearly 2.2 million loans are 90 days or more delinquent but not yet in foreclosure.Charts From The Report
Foreclosure inventories also continued to rise for the fifth straight month as delinquent accounts are referred for foreclosure, but the sale of foreclosure properties continued to decline. When compared to January 2008 levels, the foreclosure inventory of Jumbo Prime loans is nearly seven times higher; the inventory of Agency Prime loans is nearly six times higher; and the foreclosure inventory of Option ARM loans is approaching five times the inventory in January 2008.
The report also shows that one-third of loans that are 90 days or more delinquent have not made a payment in a year; however, the number of new problem loans declined nearly 5.4 percent from October, which is opposite of the seasonality trend that typically impacts new delinquencies this time of year. Self-cures for loans one to two months delinquent increased in November to a six-month high.
In the month of November, 261,153 loans were referred to foreclosure, which represents a 0.7% month-over-month decline. The total number of delinquent loans is nearly 2.1 times historical averages - and foreclosure inventory is currently at 7.7 times historical averages.
As reported in LPS' First Look release, other key results from LPS' latest Mortgage Monitor report include:
- Total U.S. loan delinquency rate: 9.02 percent
- Total U.S. foreclosure inventory rate: 4.08 percent
- Total U.S. non-current* loan rate: 13.10 percent
- States with most non-current* loans: Florida, Nevada, Mississippi, Georgia, New Jersey
- States with fewest non-current* loans: North Dakota, South Dakota, Alaska, Wyoming, Montana
The report is 34 pages long. Inquiring minds may wish to give it a closer look. Here are a few select charts.
click on any chart for sharper image
Delinquent and Foreclosure Rates by Month
Total Delinquency Percent Excluding Foreclosures
Total Foreclosure Percent By Product
Foreclosure Increase Compared to January 2008
Loan Cures
Serious Delinquencies
Foreclosure Starts vs. Serious Delinquencies
While there are some welcome trends in direction, actual foreclosures are lagging. The pent-up need to foreclose is huge.
Moreover, mortgage rates have rising nearly a full percentage point in the last 45 days. This will put a damper on already depressed home sales, making it harder to unload inventory.
Look for months of inventory to soar in the upcoming months with continued declines in home prices. Contrary to what most think, falling prices are a good thing. Home prices need to fall to a point low enough where genuine demand kicks in.
Foreclosure moratoriums are counterproductive and exacerbate existing problems.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List
I generally agree with yoru statement, all the tricks the FED did to print hosuing dollars are done now, now people have to bring real money, and that means wages. However I disagree with statement "businesses competing with foreign wages CANNOT pay higher wages to American workers". Businesses overpay their CEOs and upper management all the time (boards are made up of cronies, not directors working in best interest of stockowners) and big US businesses are generally making high profits and have record cash reserves. So businesses CAN afford to pay workers high wages, but rather, they simply WON'T because they do not have to (no laws, unions etc to force them) and the WON'T because unlike the waste of over-priced salaries at high-end of coroporate ladders, business are not so stupid and wasteful and low-end and they keep low and middle workers wages as low as they can or they outsource.
But just so you know in real world there is an alternative ( not one you will ever see in US due to our politics and people assumptions like yours) look at Germany. They are an exporting machine. Their companies are very competitive in world market AND their worker wages and benefits are much higher than US. They have higher horuly salaries, their workers get 6 weeks vacation from get go, etc.. Also, they are fairly heavily regulated, their companies are held to high safety standards, high worker fairness standards, and tough environmental standards and also their companies do a lot with expensive alternative energy.
So in my mind there are at least two ways to for a countries companies to be competitve on world market, China or Germany, the only option is NOT China and depressed wages and weak currency.
Again and again, I see smart people assuming we must just do a China to compete, low wages, weak currency, trash the environment, peel back regulations that keep workers safe and keep work place fair. Its like Germany's example does not enter our consciousness. No way we can have a strong social safety net, treat enviroment well, have a strong currency, pay workers well, regulate businesses to ensure fairness and still compete, pay not attention to Germany.
It may not be easy for US to replicate what is working for Germany, primarily simply because most in US media and culture has it so we don't even know it that at least one coutnry is already proven it is possible, but it is crazy not to at least look at what they are doing and see if maybe we could strive for something closer to them. Germany competes and grows and German workers benefit. Germans model is very good for the common wealth, and yet, all we can fixate on is China.
We see same phenomen in business. There are some companies that are very successful and treat their workers much better than average, while other companies see their only way to success is to treat low end workers as badly as possible and to overcompensate upper management. See simply Costco vs. Sam's club.
Stop self-limiting, we can be a globally competitive country and have a solid middle class and have clean air and water, safe workplaces. But we won't if we let crony upper management of US companies decide everything in their interest, because clearly, sh%^ting on workers and over-compensating themselves and their friends, corrupting our government for their purposes is what they will keep doing unless we fight for something better.
robert shumake
robert shumake
Movie <b>News</b> Quick Hits: Bigfoot to get the 'Avatar' Treatment <b>...</b>
A leaked costume test from MGM's completed-but-shelved remake of 1984's 'Red Dawn' has found its way online. It's not much, but thanks to MGM's.
Opinion: Can Oprah Help Restore Civility? - AOL <b>News</b>
Oprah began her new cable television network -- OWN -- at noon on New Year's Day, a network dedicated to the total and complete absence of mean-spiritedness.
Are Korea's “Bending” away from Bluster? « Liveshots
LONDON After a 2010 that saw the Korean peninsula edge towards the brink of nuclear Armageddon,
robert shumake
Movie <b>News</b> Quick Hits: Bigfoot to get the 'Avatar' Treatment <b>...</b>
A leaked costume test from MGM's completed-but-shelved remake of 1984's 'Red Dawn' has found its way online. It's not much, but thanks to MGM's.
Opinion: Can Oprah Help Restore Civility? - AOL <b>News</b>
Oprah began her new cable television network -- OWN -- at noon on New Year's Day, a network dedicated to the total and complete absence of mean-spiritedness.
Are Korea's “Bending” away from Bluster? « Liveshots
LONDON After a 2010 that saw the Korean peninsula edge towards the brink of nuclear Armageddon,
robert shumake
Twenty six of the areas with the highest foreclosure rates are concentrated in the states of Nevada, California, Florida and Arizona. These are traditionally warm states, hot! RealtyTrac, an internet marketer of foreclosures, states that metro areas in these four states topped the foreclosure filing list for the first quarter of 2009. Las Vegas topped the list altogether.
It's peculiar that the states with the highest foreclosure filings are in tropically warm cities. Ever wonder why? Here are a few personal theories:
I'd have to guess one reason is that older individuals flock to warmer climates for retirement, many purchasing homes. We've all heard rumblings throughout the years of senior citizens being taken advantage of by predatory lending practices. Foreclosure rates have skyrocketed in warmer climates where many seniors reside. I wonder how many of these foreclosure filings are due to unrealistic arms, predatory refinancing, reverse mortgage, and the like.
Another gander is second homes. Many people buy second homes, "vacation" properties, in warmer climates. Miami, baby! I'd love to own a condo on the beach near Sunny Isles one day, but the maintenance fees and other monthly carrying charges have kept me simply salivating at the window. But many people have jumped into purchasing second homes in states like Florida, only to see the market take a dive.
We've seen more than a few harsh hurricane seasons on the Floridian peninsula over the last decade. I wonder how many condo associations have suffered because the property insurance wasn't adequate to cover hurricane damage, which means condo owners likely had to dig into their own pockets to make up the difference. It'd be interesting to know how many condos in this scenario contribute to the foreclosure crisis. Just something to make you go, "Hmmmm..."
Further, the hot states that hold these secondary homes, vacation rentals, are not as busy with tourists as they used to be re: a recession riddled with increasing layoffs and deep cutbacks. Lack of disposable income is simply keeping people close to home. And, in reality, an investor's second home is also likely to be an investor's second priority when it comes to making a mortgage payment on the heels of a job loss or small business shutdown. Many investors are walking away from their vacation homes in an effort to save their primary residence.
I'd bet my bottom dollar a large number of foreclosures in areas like Las Vegas are second homes. Las Vegas led the pack with one in every 22 homes receiving a foreclosure filing during the first quarter of 2009. That's more than seven times the national average. Merced, California ran a close second with one in every 24 homes. Wow!
Other metro areas on the top 10 list were in the Golden State of California in areas like Riverside-San Bernardino, Modesto, Bakersfield, etc. , along with the Sunshine State's Port St. Lucie and Arizona's Phoenix.
Across the board, there are varying reasons why foreclosure rates have peaked in certain areas, but these are just a few theories why foreclosure rates have skyrocketed in "hot" areas.
To view the full list of areas with the highest foreclosure rates, visit http://www.ForeclosureCleanup.biz and click on Foreclosure Rate Data.
Foreclosure Cleanup, LLC authors the e-book: "How to Start a Foreclosure Cleanup Business"
robert shumake
Movie <b>News</b> Quick Hits: Bigfoot to get the 'Avatar' Treatment <b>...</b>
A leaked costume test from MGM's completed-but-shelved remake of 1984's 'Red Dawn' has found its way online. It's not much, but thanks to MGM's.
Opinion: Can Oprah Help Restore Civility? - AOL <b>News</b>
Oprah began her new cable television network -- OWN -- at noon on New Year's Day, a network dedicated to the total and complete absence of mean-spiritedness.
Are Korea's “Bending” away from Bluster? « Liveshots
LONDON After a 2010 that saw the Korean peninsula edge towards the brink of nuclear Armageddon,
robert shumake
robert shumake detroit
A press release from LPS' Mortgage Monitor Report shows Foreclosure Inventory Rising for 5th Straight Month
The November Mortgage Monitor report released by Lender Processing Services, Inc. (LPS) shows that the volume of loans moving to REO continued to drop as moratoria further delayed foreclosure sales. While the 90+ delinquency category has steadily declined, the number of loans moving to seriously delinquent status beyond 90 days far outpaced the number of foreclosure starts. Nearly 2.2 million loans are 90 days or more delinquent but not yet in foreclosure.Charts From The Report
Foreclosure inventories also continued to rise for the fifth straight month as delinquent accounts are referred for foreclosure, but the sale of foreclosure properties continued to decline. When compared to January 2008 levels, the foreclosure inventory of Jumbo Prime loans is nearly seven times higher; the inventory of Agency Prime loans is nearly six times higher; and the foreclosure inventory of Option ARM loans is approaching five times the inventory in January 2008.
The report also shows that one-third of loans that are 90 days or more delinquent have not made a payment in a year; however, the number of new problem loans declined nearly 5.4 percent from October, which is opposite of the seasonality trend that typically impacts new delinquencies this time of year. Self-cures for loans one to two months delinquent increased in November to a six-month high.
In the month of November, 261,153 loans were referred to foreclosure, which represents a 0.7% month-over-month decline. The total number of delinquent loans is nearly 2.1 times historical averages - and foreclosure inventory is currently at 7.7 times historical averages.
As reported in LPS' First Look release, other key results from LPS' latest Mortgage Monitor report include:
- Total U.S. loan delinquency rate: 9.02 percent
- Total U.S. foreclosure inventory rate: 4.08 percent
- Total U.S. non-current* loan rate: 13.10 percent
- States with most non-current* loans: Florida, Nevada, Mississippi, Georgia, New Jersey
- States with fewest non-current* loans: North Dakota, South Dakota, Alaska, Wyoming, Montana
The report is 34 pages long. Inquiring minds may wish to give it a closer look. Here are a few select charts.
click on any chart for sharper image
Delinquent and Foreclosure Rates by Month
Total Delinquency Percent Excluding Foreclosures
Total Foreclosure Percent By Product
Foreclosure Increase Compared to January 2008
Loan Cures
Serious Delinquencies
Foreclosure Starts vs. Serious Delinquencies
While there are some welcome trends in direction, actual foreclosures are lagging. The pent-up need to foreclose is huge.
Moreover, mortgage rates have rising nearly a full percentage point in the last 45 days. This will put a damper on already depressed home sales, making it harder to unload inventory.
Look for months of inventory to soar in the upcoming months with continued declines in home prices. Contrary to what most think, falling prices are a good thing. Home prices need to fall to a point low enough where genuine demand kicks in.
Foreclosure moratoriums are counterproductive and exacerbate existing problems.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List
I generally agree with yoru statement, all the tricks the FED did to print hosuing dollars are done now, now people have to bring real money, and that means wages. However I disagree with statement "businesses competing with foreign wages CANNOT pay higher wages to American workers". Businesses overpay their CEOs and upper management all the time (boards are made up of cronies, not directors working in best interest of stockowners) and big US businesses are generally making high profits and have record cash reserves. So businesses CAN afford to pay workers high wages, but rather, they simply WON'T because they do not have to (no laws, unions etc to force them) and the WON'T because unlike the waste of over-priced salaries at high-end of coroporate ladders, business are not so stupid and wasteful and low-end and they keep low and middle workers wages as low as they can or they outsource.
But just so you know in real world there is an alternative ( not one you will ever see in US due to our politics and people assumptions like yours) look at Germany. They are an exporting machine. Their companies are very competitive in world market AND their worker wages and benefits are much higher than US. They have higher horuly salaries, their workers get 6 weeks vacation from get go, etc.. Also, they are fairly heavily regulated, their companies are held to high safety standards, high worker fairness standards, and tough environmental standards and also their companies do a lot with expensive alternative energy.
So in my mind there are at least two ways to for a countries companies to be competitve on world market, China or Germany, the only option is NOT China and depressed wages and weak currency.
Again and again, I see smart people assuming we must just do a China to compete, low wages, weak currency, trash the environment, peel back regulations that keep workers safe and keep work place fair. Its like Germany's example does not enter our consciousness. No way we can have a strong social safety net, treat enviroment well, have a strong currency, pay workers well, regulate businesses to ensure fairness and still compete, pay not attention to Germany.
It may not be easy for US to replicate what is working for Germany, primarily simply because most in US media and culture has it so we don't even know it that at least one coutnry is already proven it is possible, but it is crazy not to at least look at what they are doing and see if maybe we could strive for something closer to them. Germany competes and grows and German workers benefit. Germans model is very good for the common wealth, and yet, all we can fixate on is China.
We see same phenomen in business. There are some companies that are very successful and treat their workers much better than average, while other companies see their only way to success is to treat low end workers as badly as possible and to overcompensate upper management. See simply Costco vs. Sam's club.
Stop self-limiting, we can be a globally competitive country and have a solid middle class and have clean air and water, safe workplaces. But we won't if we let crony upper management of US companies decide everything in their interest, because clearly, sh%^ting on workers and over-compensating themselves and their friends, corrupting our government for their purposes is what they will keep doing unless we fight for something better.
robert shumake
Movie <b>News</b> Quick Hits: Bigfoot to get the 'Avatar' Treatment <b>...</b>
A leaked costume test from MGM's completed-but-shelved remake of 1984's 'Red Dawn' has found its way online. It's not much, but thanks to MGM's.
Opinion: Can Oprah Help Restore Civility? - AOL <b>News</b>
Oprah began her new cable television network -- OWN -- at noon on New Year's Day, a network dedicated to the total and complete absence of mean-spiritedness.
Are Korea's “Bending” away from Bluster? « Liveshots
LONDON After a 2010 that saw the Korean peninsula edge towards the brink of nuclear Armageddon,
robert shumake detroit
robert shumake detroit
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