Extremely serious
delinquencies, those loans 150 days or more past due, reached historically high
levels in August.
Five months into the COVID-19 crisis, Corelogic said the rate
of delinquencies among those loans spiked to 1.2 percent, the highest level since
at least January 1999, which we assume is the limit of the company’s records. CoreLogic
said this surge was likely due to large volumes of
delinquencies moving in tandem through the pipeline. 
Dr. Frank Nothaft, chief economist
at CoreLogic said, “This was the highest rate in more than 21 years and double
the January 2010 peak during the home-price bust. The spike in delinquency was
all the more stunning given the generational low of 0.08 percent in March and
April.” Loans meeting the more
traditional measure of serious delinquency, 90 or more days past due including
loans in foreclosure, now include 4.3 percent of active mortgages, up from 1.3
percent in August 2019. This is the highest serious delinquency rate since
February 2014.

 

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