Lender Processing Services, Inc. released the June 2009 LPS Mortgage Monitor, which includes mortgage data through the end of May 2009.
Total mortgage delinquencies rose in May to 8.49% for a 5.0% increase over April’s results and a 50% year-over-year increase. The number of newly delinquent loans reached 637,822 in May 2009. The Monitor also shows that the quality of 2009 loan originations has improved, with 2009 delinquency rates well below prior years. Recently, more attention has been focused on improved credit scores, lower LTV ratios, income and documentation, overall loan vintage quality has escalated.
The success rate for distressed loan modification is in the 30-40% range. The most successful loan modifications also reduced the principal balance.