Late payments and foreclosure activity on subprime mortgages fell. But it was a different story for prime home loans.
HOPE NOW reported that 60-day delinquency was 6.61 percent during October, climbing from 6.54 percent the previous month and 4.29 percent a year earlier.
The delinquency rates are based on data submitted by HOPE NOW’s 26 servicer members that collectively service 37.8 million loans, including 32.3 million prime mortgages and 5.5 million subprime loans. Loans serviced by the group account for around 72 percent of the 52.524 million home loans outstanding in the country.
Data were revised from the prior report.
Subprime delinquency fell to 19.71 percent from 21.12 percent in September, but prime delinquency jumped to 5.06 percent from 4.81 percent.
U.S. servicers started foreclosures on 222,000 loans in October, lower than 235,000 a month earlier but higher than 182,000 a year earlier, based on an extrapolation of HOPE NOW servicer data. Prime foreclosure starts fell to 158,000 from September’s 168,000, and subprime foreclosures declined to 64,000 from 67,000.
From January to October, foreclosures were started on 2,434,575 loans.
Completed foreclosure sales, however, climbed to 94,000 from September’s 89,000 and October 2008’s 79,000. Real estate owned filings on subprime loans fell to 27,000 in October from 33,000 a month earlier, but prime REOs jumped to 68,000 from 55,000.
Year-to-date REO filings were 782,628.
Servicers completed 271,563 workout plans in October, while year-to-date workouts totaled 2,639,677.
