LPS: Mortgage delinquencies drop in May

According to LPS’s just-released May “First Look Mortgage Report,” the number of delinquent loans in the U.S. fell about 15% from 2011, while the number in foreclosure fell 6%.

While some of that decline is because there are fewer loans out there to be delinquent, in general this is Yet Another Good Sign.

What, you want numbers? Fine.

  • 644,000 fewer mortgages were delinquent in May 2012 compared to May 2011.
  • Percentage-wise, 7.2% of loans were delinquent, down from 7.96% last May.
  • There were 137,000 fewer loans in foreclosure in May 2012 compared to May 2011.
  • Percentage-wide, 4.12% of loans were in foreclosure, up from 4.11% last May.

A “normal” rate of delinquency (i.e., before the whole bubble thing) is about 4.5% to 5%, according to Calculated Risk, so delinquencies are still well above normal, but dropping; the peak was about 11%.

Click here to read the details from LPS.

Or click here to read the (poorly-titled) Calculated Risk story.

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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