Mortgage delinquencies rise slightly from May but remain near record high in June, CoreLogic reports


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Hawaii, Nevada and New Jersey show the nation’s largest year-over-year declines in overall crime

IRVINE, Calif.–(BUSINESS WIRE)–CoreLogic, a leading global provider of property insights, analytics and data solutions, today released its monthly Loan Performance Report for June 2022.

This press release is multimedia. View the full press release here: https://www.businesswire.com/news/home/20220913005594/en/

Figure 1: National Loan Performance Snapshot (Graphic: Business Wire)

For the month of June, 2.9% of all US mortgages were at some stage of delinquency (30 days or more past due, including those in foreclosure), representing a decrease by 1.5 percentage points compared to 4.4% in June 2021.

To get a complete view of the mortgage market and the health of loan performance, CoreLogic examines all stages of delinquency. As of June 2022, default and transition rates in the United States, and their year-over-year changes, were as follows:

  • Early delinquencies (30 to 59 days late): 1.2%, compared to 1.1% in June 2021.
  • Unfavorable delinquency (60 to 89 days late): 0.3%, unchanged from June 2021.
  • Serious delinquency (90 days or more past due, including loans in foreclosure): 1.3%, down from 3% in June 2021 and a high of 4.3% in August 2020.
  • Seizure inventory rate (the share of mortgage loans at some stage of the foreclosure process): 0.3%, compared to 0.2% in June 2021.
  • Transition rate (the share of mortgage loans that went from outstanding to 30 days past due): 0.7%, compared to 0.6% in June 2021.

Overall, mortgage delinquencies and foreclosure rates remained near two-decade lows in June, with house price growth remaining in double digits and a strong U.S. labor market helping to sustain the performance of healthy mortgages. Metropolitan areas that rely on the hospitality industry saw particularly large job losses due to the COVID-19 pandemic in 2020, while hurricanes in the same year impacted employment on the coast of the Gulf. This naturally led to an increase in mortgage delinquencies, but the parts of the country that were most affected are now recovering.

“While early-stage delinquencies rose slightly in June, they remained near historic lows throughout the first half of 2022,” said Molly Boesel, senior economist at CoreLogic. “Subsequent delinquencies fell 60% from June 2021, with only a slight increase in foreclosures, indicating that defaulting borrowers are able to find alternatives to foreclosure.”

State and Metro Takeout:

  • In June, all states posted annual declines in their overall crime rates. The states with the largest declines were Hawaii and Nevada (both down 2.6 percentage points), New Jersey (down 2.4 percentage points) and New York (down 2 .3 percentage points). The other states, including the District of Columbia, had annual delinquency rates that fell between 2.1 percentage points and 0.4 percentage points.

  • All US metro areas posted at least a slight annual decline in overall crime rates, with Kahului-Wailuku-Lahina, HI (down 4.2 percentage points), Odessa, TX (down 4 .1 percentage points) and Atlantic City-Hammonton, NJ (down 3.3 percentage points) posting the largest declines.

The next CoreLogic Loan Performance Insights report will be released on September 29, 2022, with data for July 2022. For current housing trends and data, visit the CoreLogic Intelligence blog: www.corelogic.com/intelligence.

Methodology

Data from the CoreLogic LPI report represents reported foreclosure and delinquency activity through June 2022. The data in this report only considers primary liens against a property and does not include secondary liens. Delinquency, transition and foreclosure rates are measured only against homes that have an outstanding mortgage. Houses without mortgage liens are not subject to foreclosure and are therefore excluded from the analysis. CoreLogic has approximately 75% coverage of US seizure data.

Source: CoreLogic

The data provided is intended for use only by the primary recipient or the primary recipient’s publication or broadcast. 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 CoreLogic’s prior written permission. All CoreLogic data used for publication or dissemination, in whole or in part, must be sourced from CoreLogic, a data and analytics company. For use with broadcast or web content, the citation should directly accompany the first data reference. If the data is illustrated by maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or on the website. For any questions, analysis or interpretation of the data, contact Robin Wachner at [email protected]. Data provided may not be changed without prior written permission from CoreLogic. Do not use the data illegally. This data is compiled from public records, contributory databases and proprietary analysis, and its accuracy depends on these sources.

About CoreLogic

CoreLogic is a leading global provider of property information, analytics, and data-driven solutions. The company’s combined data from public, contributory and proprietary sources includes more than 4.5 billion records spanning over 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, location, 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 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. Based in Irvine, California, CoreLogic operates in North America, Western Europe and Asia-Pacific. For more information, please visit www.corelogic.com.

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

Media Contact:

Robin Wacher

CoreLogic

[email protected]

Source: CoreLogic

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