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The national delinquency rate Before the Pandemic was 3.5 % even if now the rate has reached there, CoreLogic says the percentage of loans 30 or more days past due has declined 2.6 points. The rate in May 2021 was 4.7 % compared to 7.3 % same time last year.
Frank Martell, president, and CEO of CoreLogic said that even though the pandemic has created many challenges but, the impact on delinquencies is less because of various government support programs and improvement in economic activity over the past few quarters.
Corelogic expects a robust economy and low interest rates to hold delinquency levels.
Early-stage delinquencies, of 30 to 59 days which represented 3.0 % of all mortgage loans in May last year had dropped to 1.2 % by May this year and adverse delinquencies, 60 to 89 days past due, have improved from 2.8 % to 0.3 %.
Seriously delinquent loans, which are 90 or more days past due and those in foreclosure, are still high at 3.2 % compared to 1.5 % last year, Serious delinquencies were at a peak at 4.3 % in August 2020.
The foreclosure inventory remains the same at 0.3 %. This is because of the continued moratorium on foreclosures of GSE and federally guaranteed loans.
CoreLogic says when government provisions end many will face foreclosure crisis. Thankfully, the average homeowner in forbearance has good equity in their home, which has created a cushion for those struggling to make mortgage payments.
The things that have supported most borrowers to stall a foreclosure wave are strong equity gains, loan modifications programs, and resources from the federal.
A recent CoreLogic survey of mortgage holders reports 85 % of people saying that they maintained employment through the pandemic, which has helped many avoid delinquency and prevented a broad-scale mortgage crisis.
The improvement in the whole delinquency numbers was seen across all U.S. states and metro areas.
