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
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
DevOps and microservices are permeating software engineering teams broadly, whether these teams are in pure software shops but happen to run a business, such Uber and Airbnb, or in companies that rely heavily on software to run more traditional business, such as financial firms or high-end manufacturers. Microservices and DevOps have created software development and therefore business speed and agility benefits, but they have also created problems; specifically, they have created software securi...
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business. Though, IoT is far more complex than most firms expected with a majority of IoT projects having failed. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, Chief IoTologist at Wipro, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology portfolios and business models to adopt and leverage IoT. He will delve in...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Cloud Expo, Inc. has announced today that Aruna Ravichandran, vice president of DevOps Product and Solutions Marketing at CA Technologies, has been named co-conference chair of DevOps at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at @ThingsExpo, Steve Wilkes, CTO and founder of Striim, will delve into four enterprise-scale, business-critical case studies where streaming analytics serves as the key to enabling real-time data integration and right-time insights in hybrid cloud, IoT, and fog computing environments. As part of this discussion, he will also present a demo based on its partnership with Fujitsu, highlighting their technologies in a healthcare IoT use-case. The demo showcases the tracking of pati...
Tricky charts and visually deceptive graphs often make a case for the impact IT performance has on business. The debate isn't around the obvious; of course, IT performance metrics like website load time influence business metrics such as conversions and revenue. Rather, this presentation will explore various data analysis concepts to understand how, and how not to, assert such correlations. In his session at 20th Cloud Expo, Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Sys...
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
Stratoscale, the software company developing the next generation data center operating system, exhibited at SYS-CON's 18th International Cloud Expo®, which took place at the Javits Center in New York City, NY, in June 2016.Stratoscale is revolutionizing the data center with a zero-to-cloud-in-minutes solution. With Stratoscale’s hardware-agnostic, Software Defined Data Center (SDDC) solution to store everything, run anything and scale everywhere, IT is empowered to take control of their data ce...
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change the...