Welcome!

News Feed Item

TransUnion: Mortgage Delinquency Rate Continues to Drop Across All Age Groups

CHICAGO, IL -- (Marketwired) -- 08/20/14 -- The mortgage delinquency rate (the rate of borrowers 60 days or more delinquent on their mortgages) declined for the 10th consecutive quarter to 3.46% at the end of Q2 2014, according to TransUnion's latest mortgage report. The mortgage delinquency rate has declined nearly 20% in the last year (down from 4.32% in Q2 2013).

TransUnion data indicate that declines in the mortgage delinquency rate are occurring across all age groups. The youngest mortgage borrowers, those below the age of 30, have both the lowest mortgage delinquency rate (2.34%), and have experienced the steepest decline in the last year (down 28.6%). However, this age group also represents a small share of all mortgage accounts -- 4.16%.

   Share of Mortgage Accounts/Delinquency Rate by Age Group as of Q2 2014

----------------------------------------------------------------------------
                                                       60+ Days Mortgage
        Age Group            Share of Accounts          Delinquency Rate
----------------------------------------------------------------------------
        Under 30                   4.16%                     2.34%
----------------------------------------------------------------------------
          30-39                    17.53%                    3.91%
----------------------------------------------------------------------------
          40-49                    24.66%                    4.43%
----------------------------------------------------------------------------
          50-59                    27.06%                    3.46%
----------------------------------------------------------------------------
           60+                     26.30%                    2.58%
----------------------------------------------------------------------------

"Mortgage delinquency rates continue to drop and we are seeing this decline across all age groups," said Steve Chaouki, head of financial services for TransUnion. "Overall, the improvements in the mortgage delinquency rate can be attributed to a number of factors. These include the clearing of severely delinquent accounts through foreclosure as well as a lower rate of new delinquencies from post-recession vintages, which generally are of significantly higher credit quality and have experienced much better performance than mortgages originated before the recession. This dynamic is likely driving the low delinquencies among younger borrowers. It is encouraging to see younger borrowers perform well, since their generation was significantly impacted by the recession and their loans are among the newest."

All 50 states and the District of Columbia experienced declines in their mortgage delinquency rates between Q2 2013 and Q2 2014. Most major markets also saw yearly drops in their mortgage delinquency rates, including: San Francisco (-29.3%), Phoenix (-28.7%), Miami (-26.7%), Los Angeles (-24.1%) and Chicago (-20.6%). Markets lagging the national average in terms of the rate of delinquency improvement include: Philadelphia (-1.1%), Boston (-4.1%) and New York (-5.5%).

TransUnion recorded 52.8 million mortgage accounts as of Q2 2014, up from 52.4 million in Q2 2013. However, there are more than 10 million fewer accounts as compared to the same period in 2008 (63.4 million).

Viewed one quarter in arrears (to ensure all accounts are reported and included in the data), new account originations dropped 51.1% from 2.2 million in Q1 2013 to 1.1 million in Q1 2014. The share of non-prime originations did rise in the last year, increasing from 5.0% in Q1 2013 to 7.8% in Q1 2014. "The drop in mortgage account originations was dramatic. This resulted from a severe decline in refinance activity due to higher interest rates, compounded by unusually harsh weather conditions across large parts of the country," said 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.

Q2 2014 Mortgage Statistics - Delinquency Rates

Quarter over Quarter         Q1 2014         Q2 2014         Pct. Change
----------------------------------------------------------------------------
USA                          3.61%           3.46%           (4.2%)
----------------------------------------------------------------------------



Year over Year               Q1 2013         Q2 2014         Pct. Change
----------------------------------------------------------------------------
USA                          4.32%           3.46%           (19.9%)
----------------------------------------------------------------------------



Mortgage Delinquency Rate for Select States   Q2 2014
----------------------------------------------------------------------------
California                                                             2.61%
----------------------------------------------------------------------------
Florida                                                                7.11%
----------------------------------------------------------------------------
Illinois                                                               3.71%
----------------------------------------------------------------------------
New York                                                               5.50%
----------------------------------------------------------------------------
Texas                                                                  2.95%
----------------------------------------------------------------------------



Largest Year-over-Year
 Declines                    Q1 2013         Q1 2014         Pct. Change
----------------------------------------------------------------------------
Nevada                       8.26%           5.54%           (32.9%)
----------------------------------------------------------------------------
California                   3.88%           2.61%           (32.7%)
----------------------------------------------------------------------------
Arizona                      3.90%           2.65%           (32.1%)
----------------------------------------------------------------------------



Smallest Year-over-Year
 Declines                    Q1 2013         Q1 2014         Pct. Change
----------------------------------------------------------------------------
West Virginia                2.95%           2.81%           (4.7%)
----------------------------------------------------------------------------
Pennsylvania                 3.98%           3.69%           (7.3%)
----------------------------------------------------------------------------
Vermont                      2.74%           2.51%           (8.4%)
----------------------------------------------------------------------------


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=2660600

Contact
Dave Blumberg
TransUnion
Email Contact
(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
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
The best way to leverage your CloudEXPO | DXWorldEXPO presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering CloudEXPO | DXWorldEXPO will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at CloudEXPO. Product announcements during our show provide your company with the most reach through our targeted audienc...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors!
JETRO showcased Japan Digital Transformation Pavilion at SYS-CON's 21st International Cloud Expo® at the Santa Clara Convention Center in Santa Clara, CA. The Japan External Trade Organization (JETRO) is a non-profit organization that provides business support services to companies expanding to Japan. With the support of JETRO's dedicated staff, clients can incorporate their business; receive visa, immigration, and HR support; find dedicated office space; identify local government subsidies; get...
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
We all know that end users experience the internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices - not doing so will be a path to eventual ...
We all know that end users experience the internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices - not doing so will be a path to eventual ...
"We were founded in 2003 and the way we were founded was about good backup and good disaster recovery for our clients, and for the last 20 years we've been pretty consistent with that," noted Marc Malafronte, Territory Manager at StorageCraft, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
DXWorldEXPO LLC announced today that ICC-USA, a computer systems integrator and server manufacturing company focused on developing products and product appliances, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. ICC is a computer systems integrator and server manufacturing company focused on developing products and product appliances to meet a wide range of ...