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 (DX) is not a "one-size-fits all" strategy. Each organization needs to develop its own unique, long-term DX plan. It must do so by realizing that we now live in a data-driven age, and that technologies such as Cloud Computing, Big Data, the IoT, Cognitive Computing, and Blockchain are only tools. In her general session at 21st Cloud Expo, Rebecca Wanta explained how the strategy must focus on DX and include a commitment from top management to create great IT jobs, monitor ...
"WineSOFT is a software company making proxy server software, which is widely used in the telecommunication industry or the content delivery networks or e-commerce," explained Jonathan Ahn, COO of WineSOFT, 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.
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that's no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, explored how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He expla...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
Sanjeev Sharma Joins June 5-7, 2018 @DevOpsSummit at @Cloud Expo New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone inn...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
There is a huge demand for responsive, real-time mobile and web experiences, but current architectural patterns do not easily accommodate applications that respond to events in real time. Common solutions using message queues or HTTP long-polling quickly lead to resiliency, scalability and development velocity challenges. In his session at 21st Cloud Expo, Ryland Degnan, a Senior Software Engineer on the Netflix Edge Platform team, will discuss how by leveraging a reactive stream-based protocol,...