Hawaii, Nevada and New Jersey post the country’s largest year-over-year overall delinquency declines

CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report for June 2022.

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Figure 1: National Overview of Loan Performance (Graphic: Business Wire)

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

To gain a complete view of the mortgage market and loan performance health, CoreLogic examines all stages of delinquency. In June 2022, the U.S. delinquency and transition rates, and their year-over-year changes, were as follows:

• Early-Stage Delinquencies (30 to 59 days past due): 1.2%, up from 1.1% in June 2021.
• Adverse Delinquency (60 to 89 days past due): 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.
• Foreclosure Inventory Rate (the share of mortgages in some stage of the foreclosure process): 0.3%, up from 0.2% in June 2021.
• Transition Rate (the share of mortgages that transitioned from current to 30 days past due): 0.7%, up from 0.6% in June 2021.

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

“While early-stage delinquencies edged up in June, they remained near historic lows through the first half of 2022,” said Molly Boesel, principal economist at CoreLogic. “Later-stage delinquencies fell by 60% from June 2021, with only a small increase in foreclosures, indicating that delinquent borrowers are able to find alternatives to foreclosure.”

State and Metro Takeaways:

• In June, all states posted annual declines in their overall delinquency 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 remaining states, including the District of Columbia, registered annual delinquency rate drops between 2.1 percentage points and 0.4 percentage points.
• All U.S. metro areas posted at least a small annual decrease in overall delinquency 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 decreases.

The next CoreLogic Loan Performance Insights Report will be released on September 29, 2022, featuring data for July 2022. For ongoing housing trends and data, visit the CoreLogic Intelligence Blog: www.corelogic.com/intelligence.

Methodology

The data in The CoreLogic LPI report represents foreclosure and delinquency activity reported through June 2022. The data in this report accounts for only first liens against a property and does not include secondary liens. The delinquency, transition and foreclosure rates are measured only against homes that have an outstanding mortgage. Homes without mortgage liens are not subject to foreclosure and are, therefore, excluded from the analysis. CoreLogic has approximately 75% coverage of U.S. foreclosure data.

Source: CoreLogic

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About CoreLogic

CoreLogic is a leading global property information, analytics and data-enabled solutions provider. The company's combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, 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 clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.

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