CoreLogic Reports US Foreclosure Rate in June Lowest in Over Two Decades


IRVINE, Calif .– (COMMERCIAL THREAD) – CoreLogic, a leading global provider of real estate information, analytics and data-driven solutions, today released its monthly loan performance report for June 2021.

For the month of June, 4.4% of all mortgages in the United States were at some stage of delinquency (30 days or more past due, including those in foreclosure), which is a decrease of 2.7 percentage points of delinquency compared to June 2020, when it was 7.1%. Despite the positive trend, overall delinquencies remain above the pre-pandemic rate of February 2020 of 3.6%.

To get an accurate view of the mortgage market and loan performance health, CoreLogic examines all stages of delinquency. In June 2021, the delinquency and transition rates in the United States, as well as their variations from year to year, were as follows:

  • Early delinquency (30 to 59 days late): 1.1%, compared to 1.8% in June 2020.
  • Unwanted delinquency (60 to 89 days late): 0.3%, compared to 1.8% in June 2020.
  • Serious delinquency (90 days or more past due, including foreclosed loans): 3%, up from 3.4% in June 2020. Although still high, this is the tenth consecutive month of decline and delinquency rate lowest since May 2020.
  • Foreclosure inventory rate (the share of mortgages at a certain stage of the foreclosure process): 0.2%, compared with 0.3% in June 2020. This is the lowest foreclosure rate recorded since CoreLogic began recording data (1999).
  • Transition rate (the share of mortgages that went from current maturities to 30 days): 0.6%, down from 1% in June 2020.

In June, the federal moratorium on foreclosures was extended once again until July 31 to give homeowners more time to get back on track financially. The moratorium helped shift the foreclosure rate to a new generational low. However, a CoreLogic survey of mortgage holders found that nearly half (43%) of respondents said they did not understand government mortgage relief programs, which could contribute to low mortgage rates. higher overall failures.

“The downward trend in defaults, especially severe cases, is very encouraging – and testifies to the impact of the significant economic rebound over the past six months, as well as government stimuli, record mortgage rates and loan modification options, ”said Frank Martell, president and CEO of CoreLogic. “Providing resources to distressed homeowners to educate them on available government and private sector support will help reduce delinquency and foreclosure rates even further over the remainder of this year. ”

“While job and income growth has helped bring down delinquency rates, many families remain in financial difficulty,” said Dr Frank Nothaft, chief economist at CoreLogic. “More than one million borrowers missed six or more payments in June, triple the number of borrowers before the pandemic. CoreLogic’s analysis found that by June 2021, borrowers withheld and late on mortgage payments had missed an average of 10 monthly payments. ”

State and metro to take away:

  • In June, all of the U.S. states saw a decline in overall annual delinquency rates, New Jersey (down 4.8 percentage points), New York (down 4.4 percentage points) and Florida ( down 4.1 percentage points) at the top with the largest declines.

  • All US subways also posted annual declines in overall delinquency rates in June, Miami (down 6.6 percentage points), Laredo, Texas (down 5.7 percentage points) and Kingston, New York (down 5.6 percentage points) recording the largest declines.

  • Nevertheless, high overall delinquency rates persist in some metropolitan areas, notably Odessa (11.1%) and Laredo (10.7%), Texas; Vineland, New Jersey (10.6%); and Pine Bluff, Arkansas (10.4%).

The next CoreLogic Loan Performance Insights report will be released on October 12, 2021, with data for July 2021. For current housing trends and data, visit the CoreLogic Intelligence blog: www.corelogic.com/intelligence.

Methodology

Data in the CoreLogic LPI report represents foreclosure and delinquency activity reported through June 2021. The data in this report only takes into account first liens on a property and does not include secondary liens. Delinquency, transition and foreclosure rates are measured only against homes that have an outstanding mortgage. Homes without mortgage privileges are not subject to foreclosure and are therefore excluded from the analysis. CoreLogic has approximately 75% lockdown data coverage in the United States.

About the CoreLogic Consumer Sentiment Survey on Housing

Over 3,000 consumers have been surveyed by CoreLogic via Qualtrics. The study is an annual boost in US real estate market dynamics focused on consumers looking to buy a home, consumers not looking to buy a home, and current mortgage holders. The survey was conducted in April 2021 and hosted on Qualtrics. The survey has a sampling error of approximately 3% at the total respondent level with a confidence level of 95%.

Source: CoreLogic

The data provided is intended for use only by the primary recipient or the publication or distribution of the primary recipient. This data may not be resold, republished, or licensed to any other source, including publications and sources owned by the primary recipient’s parent company without the prior written permission of CoreLogic. All CoreLogic data used for publication or distribution, in whole or in part, must come from CoreLogic, a data and analytics company. For use with broadcast or web content, the citation must directly accompany the first reference of the data. If the data is illustrated by maps, tables, graphs or other visual elements, the CoreLogic logo should be included on the screen or on the website. For any questions, analysis or interpretation of the data, contact Amy Brennan at [email protected] The data provided cannot be modified without the prior written consent of CoreLogic. Do not use the data illegally. This data is compiled from public records, contributory databases and proprietary analyzes, and its accuracy depends on these sources.

About CoreLogic

CoreLogic is one of the world’s leading providers of real estate information, analytics and data-driven solutions. The company’s combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning over 50 years, providing detailed coverage of property, mortgages and other charges, consumer credit, location, location, hazard risks and associated performance information. Markets served by CoreLogic include real estate and mortgage finance, insurance, capital markets and the public sector. CoreLogic delivers value to customers through unique data, analytics, workflow technology, advisory and managed services. Customers rely on CoreLogic to identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, California, CoreLogic operates in North America, Western Europe and Asia-Pacific. For more information, please visit www.corelogic.com.

CORELOGIC, the CoreLogic logo, CoreLogic HPI, and CoreLogic HPI Forecast are trademarks of CoreLogic, Inc. and / or its subsidiaries. All other trademarks are the property of their respective owners.

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