Welcome!

News Feed Item

TransUnion: Mortgage Delinquency Rate Continues to Drop While Non-Prime Borrowers Represent Bigger Share of New Loans

CHICAGO, IL -- (Marketwired) -- 05/07/14 -- The mortgage delinquency rate (the rate of borrowers 60 days or more delinquent on their mortgages) declined for the ninth consecutive quarter to 3.61% at the end of Q1 2014, according to TransUnion's latest mortgage report. The mortgage delinquency rate has declined more than 24% in the last year (down from 4.76% in Q1 2013), and it is now at the exact same level as it stood in Q2 2008.

"It's encouraging to see mortgage delinquencies drop once again, especially during a period when mortgage originations slowed considerably," said Steve Chaouki, head of financial services for TransUnion. "This trend in improved performance is driven in part by lenders working their way through the foreclosure backlog, along with continued conservatism in underwriting new mortgages."

All 50 states and the District of Columbia experienced declines in their mortgage delinquency rates between Q1 2013 and Q1 2014. The largest percentage declines continued to occur in states most impacted by the mortgage crisis -- Arizona (down 37.8%), California (down 36.9%) and Nevada (down 34.0%). Both Arizona (2.81%) and California (2.80%), which just five years earlier had delinquency rates nearly double the national average, are now significantly lower than the rest of the nation.

TransUnion recorded 53.47 million mortgage accounts as of Q1 2014, up from 53.06 million in Q1 2013. However, there are more than 9.91 million fewer accounts as compared to the same period in 2008 (63.38 million).

Viewed one quarter in arrears (to ensure all accounts are reported and included in the data), new account originations dropped from 2.33 million in Q4 2012 to 1.39 million in Q4 2013. Interestingly, the non-prime population (those consumers with a VantageScore® 2.0 credit score lower than 700) did see an increase in their share of originations, rising from 4.98% in Q4 2012 to 7.21% in Q4 2013. The decline in refinance activity may have contributed to this outcome. Despite the increase, the percentage of non-prime account originations remains well below those observed just six years ago (15.97% in Q4 2007).

"While still far from levels seen six years ago, non-prime borrowers are taking a larger share of new originations," said Chaouki. "We have not seen this in quite some time. Even so, mortgage underwriting remains conservative relative to the other primary credit products in the marketplace."

TransUnion is forecasting that the downward consumer delinquency trend will continue into the second quarter of 2014, with mortgage delinquencies falling to approximately 3.40% by the end of June.

TransUnion's forecast is based on various economic assumptions, such as gross state product, consumer sentiment, unemployment rates, real personal income, and real estate values. The forecast would change if there are unanticipated shocks to the economy affecting recovery in the housing market or if home prices begin to depreciate once again.
"We expect mortgage originations will once again pick up steam, and with continued tight lending standards, this should only help further bring down the mortgage delinquency rate," added Chaouki.

This information is reported by TransUnion and is part of its ongoing series of quarterly analyses of credit-active U.S. consumers and how they are managing credit related to mortgages, credit cards and auto loans. To subscribe to TransUnion news releases, please click here.

Q1 2014 Mortgage Statistics - Delinquency Rates


Quarter over Quarter        Q4 2013         Q1 2014         Pct. Change
----------------------------------------------------------------------------
USA                               3.85%           3.61%               (6.2%)
----------------------------------------------------------------------------



Year over year               Q1 2013          Q1 2014         Pct. Change
----------------------------------------------------------------------------
USA                                4.76%            3.61%            (24.2%)
----------------------------------------------------------------------------



Mortgage Delinquency Rate for Select States                          Q1 2014
----------------------------------------------------------------------------
California                                                             2.80%
----------------------------------------------------------------------------
Florida                                                                7.64%
----------------------------------------------------------------------------
Illinois                                                               3.94%
----------------------------------------------------------------------------
New York                                                               5.59%
----------------------------------------------------------------------------
Texas                                                                  3.02%
----------------------------------------------------------------------------



Largest Year-over-Year Declines      Q1 2013        Q1 2014     Pct. Change
----------------------------------------------------------------------------
Arizona                                   4.52%          2.81%       (37.8%)
----------------------------------------------------------------------------
California                                4.44%          2.80%       (36.9%)
----------------------------------------------------------------------------
Nevada                                    9.26%          6.11%       (34.0%)
----------------------------------------------------------------------------



Smallest Year-over-Year Declines      Q1 2013        Q1 2014     Pct. Change
----------------------------------------------------------------------------
New York                                   6.07%          5.59%       (7.9%)
----------------------------------------------------------------------------
New Jersey                                 7.44%          6.84%       (8.1%)
----------------------------------------------------------------------------
Vermont                                    2.83%          2.59%       (8.5%)
----------------------------------------------------------------------------


About TransUnion
As a global leader in credit and information management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering comprehensive data and advanced analytics and decisioning. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Founded in 1968 and headquartered in Chicago, TransUnion reaches businesses and consumers in 33 countries around the world on five continents. www.transunion.com/business

Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2585745

Add to Digg Bookmark with del.icio.us Add to Newsvine

Contact

Dave Blumberg
TransUnion
E-mail: Email Contact
Telephone: (312) 985 3059

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
For financial firms, the cloud is going to increasingly become a crucial part of dealing with customers over the next five years and beyond, particularly with the growing use and acceptance of virtual currencies. There are new data storage paradigms on the horizon that will deliver secure solutions for storing and moving sensitive financial data around the world without touching terrestrial networks. In his session at 20th Cloud Expo, Cliff Beek, President of Cloud Constellation Corporation, ...
In order to meet the rapidly changing demands of today’s customers, companies are continually forced to redefine their business strategies in order to meet these needs, stay relevant and continue to see profitable growth. IoT deployment and development is integral in this transformation, and today businesses are increasingly seeing the value of investing their resources into IoT deployments. These technologies are able increase ROI through projects such as connecting supply chains or enabling sm...
Interested in leveling up on your Cloud Foundry skills? Join IBM for Cloud Foundry Days on June 7 at Cloud Expo New York at the Javits Center in New York City. Cloud Foundry Days is a free half day educational conference and networking event. Come find out why Cloud Foundry is the industry's fastest-growing and most adopted cloud application platform.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assis...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
SYS-CON Events announced today that Carbonite will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Carbonite protects your entire IT footprint with the right level of protection for each workload, ensuring lower costs and dependable solutions with DoubleTake and Evault.
SYS-CON Events announced today that EARP Integration will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. EARP Integration is a passionate software house. Since its inception in 2009 the company successfully delivers smart solutions for cities and factories that start their digital transformation. EARP provides bespoke solutions like, for example, advanced enterprise portals, business intelligence systems an...
In his session at 20th Cloud Expo, Brad Winett, Senior Technologist for DDN Storage, will present several current, end-user environments that are using object storage at scale for cloud deployments including private cloud and cloud providers. Details on the top considerations of features and functions for selecting object storage will be included. Brad will also touch on recent developments in tiering technologies that deliver single solution and an end-user view of data across files and objects...
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA
SYS-CON Events announced today that Outscale, a global pure play Infrastructure as a Service provider and strategic partner of Dassault Systèmes, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2010, Outscale simplifies infrastructure complexities and boosts the business agility of its customers. Outscale delivers a secure, reliable and industrial strength solution for its customers, which i...
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...