Foreclosures hold steady from March 2022, remaining near historic lows

CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report for April 2022.

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Figure 1: National Overview of Live Performance (Graphic: Business Wire)

For the month of April, 2.9% of all mortgages in the U.S. were in some stage of delinquency (30 days or more past due, including those in foreclosure), representing a 1.8 percentage point decrease compared to 4.7% in April 2021.

To gain a complete view of the mortgage market and loan performance health, CoreLogic examines all stages of delinquency. In April 2022, the U.S. delinquency and transition rates and their year-over-year changes, were as follows:

• Early-Stage Delinquencies (30 to 59 days past due): 1.2%, up from 1% April 2021.
• Adverse Delinquency (60 to 89 days past due): 0.3%, unchanged from April 2021.
• Serious Delinquency (90 days or more past due, including loans in foreclosure): 1.4%, down from 3.3% in April 2021 and a high of 4.3% in August 2020.
• Foreclosure Inventory Rate (the share of mortgages in some stage of the foreclosure process): 0.3%, unchanged from April 2021.
• Transition Rate (the share of mortgages that transitioned from current to 30 days past due): 0.7%, up from 0.6% in April 2021.

Double-digit annual home price gains for more than the past year resulted in continually increasing equity gains in the first quarter, helping keep U.S. overall mortgage delinquency and foreclosure rates near an all-time low in April. Although delinquency and foreclosure numbers were unchanged from March 2022 and last April, both rose slightly from late 2021. This small shift in foreclosure numbers partially reflects lenders ending their forbearance periods for extremely delinquent borrowers rather than the overall health of what remains a relatively solid housing market.

“The U.S. foreclosure rate edged up in spring 2022 after hitting a historic low at the end of 2021,” said Molly Boesel, principal economist at CoreLogic. “Moratoria and forbearance that helped keep homeowners out of foreclosure are expiring for many borrowers, but ongoing strong employment numbers and large amounts of equity should keep foreclosure rates low moving forward.”

State and Metro Takeaways:

• In April, all states posted annual declines in their overall delinquency rate. The states with the largest declines were Nevada (down 3.2 percentage points), Hawaii (down 3 percentage points) and New Jersey (down 2.7 percentage points). The remaining states, including the District of Columbia, registered annual delinquency rate drops between 2.6 percentage points and 0.7 percentage points.
• All U.S. metro areas posted at least a small annual decrease in overall delinquency rates, with Odessa, Texas (down 5 percentage points), Kahului-Wailuku-Lahaina, Hawaii (down 4.9 percentage points) and Midland, Texas (down 4.3 percentage points) posting the largest decreases.

The next CoreLogic Loan Performance Insights Report will be released on August 9, 2022, featuring data for May 2022. For ongoing housing trends and data, visit the CoreLogic Intelligence Blog: www.corelogic.com/intelligence.

Methodology

The data in The CoreLogic LPI report represents foreclosure and delinquency activity reported through April 2022. The data in this report accounts for only first liens against a property and does not include secondary liens. The delinquency, transition and foreclosure rates are measured only against homes that have an outstanding mortgage. Homes without mortgage liens are not subject to foreclosure and are, therefore, excluded from the analysis. CoreLogic has approximately 75% coverage of U.S. foreclosure data.

Source: CoreLogic

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About CoreLogic

CoreLogic is a leading global property information, analytics and data-enabled solutions provider. The company's combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.

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