Seasonal Slide: CoreLogic Reports U.S. Mortgage Delinquency Rates Level Off in February

Rhea-AI Summary

CoreLogic (NYSE: CLGX) released its Loan Performance Insights Report for February 2021, revealing that 5.7% of U.S. mortgages were in delinquency, a 2.1 percentage point increase from February 2020. The report highlights a slight month-to-month uptick, despite a serious delinquency rate of 3.7%, up from 1.2% in the previous year. Notably, early-stage delinquencies decreased to 1.5%, and the foreclosure inventory rate fell to 0.3%. Improving job markets and government support contributed to a more positive outlook for mortgage borrowers.

Positive

• Serious delinquency rate decreased sequentially from August 2020.
• Improvement in consumer sentiment as 80% unlikely to miss mortgage payments.
• Foreclosure inventory rate declined to 0.3% from 0.4% year-over-year.
• Early-stage delinquencies decreased from 1.8% to 1.5% year-over-year.

Negative

• Overall delinquency increased by 2.1 percentage points year-over-year.
• First month-to-month increase in national delinquency since August 2020.
• Serious delinquency rate increased from 1.2% to 3.7% year-over-year.

CoreLogic^® (NYSE: CLGX), a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report for February 2021.

CoreLogic National Overview of Mortgage Loan Performance, featuring February 2021 Data (Graphic: Business Wire)

For the month of February, 5.7% 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 2.1-percentage point increase in the overall delinquency rates compared to February 2020. The slight (0.1 percentage point) increase over January 2021 marks the first uptick in month-to-month national delinquency since August 2020.

To gain an accurate view of the mortgage market and loan performance health, CoreLogic examines all stages of delinquency. In February 2021, 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): 1.5%, down from 1.8% in February 2020.
• Adverse Delinquency (60 to 89 days past due): 0.5%, down from 0.6% in February 2020.
• Serious Delinquency (90 days or more past due, including loans in foreclosure): 3.7%, up from 1.2% in February.
• Foreclosure Inventory Rate (the share of mortgages in some stage of the foreclosure process): 0.3%, down from 0.4% in February 2020.
• Transition Rate (the share of mortgages that transitioned from current to 30 days past due): 0.9%, unchanged from February 2020.

Government support throughout the pandemic, and improving employment rates, have enabled more borrowers to remain current on their mortgages than would otherwise have occurred. With a more optimistic economic outlook, consumer sentiment has improved. In fact, according to a recent CoreLogic consumer survey, 8 in 10 respondents indicated they were unlikely to fall behind on their mortgage payment based on their current financial situation.

“Overall delinquency ticked up slightly in February, but the serious delinquency and foreclosure rates continued a sequential monthly decline that began in August,” said Frank Martell, president and CEO of CoreLogic. “Consumer confidence continues to rise as the economy roars back to life. These factors bode well for housing fundamentals in 2021 and as far as the eye can see.”

“Some families that had overspent during the year-end holiday season, and then faced financial stress in the new year, may slip behind on a mortgage payment by February,” said Dr. Frank Nothaft, chief economist at CoreLogic. “During each of the last five years, the 30-day delinquency rate moved higher from January to February. With economic conditions improving, we expect delinquency rates to move lower in coming months.”

State and Metro Takeaways:

• All U.S. states and nearly all metro areas logged increases in annual overall delinquency rates in February.
• Hawaii and Nevada (both up 4 percentage points) again logged the largest annual increase in overall delinquency rates in February.
• Among metros, Odessa, Texas, still recovering from job losses in the oil industry, had the largest annual overall delinquency increase with 9.9 percentage points.
• Other metro areas with significant overall delinquency increases included Midland, Texas (up 7.7 percentage points); Kahului, Hawaii (up 6.5 percentage points); and Lake Charles, Louisiana (up 6.2 percentage points).

The next CoreLogic Loan Performance Insights Report will be released on June 8, 2021, featuring data for March 2021. For ongoing housing trends and data, visit the CoreLogic Insights Blog: www.corelogic.com/insights.

Methodology

The data in The CoreLogic LPI report represents foreclosure and delinquency activity reported through February 2021. 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.

About the CoreLogic Consumer Housing Sentiment Study

3,000+ consumers were surveyed by CoreLogic via Qualtrics. The study is an annual pulse of U.S. housing market dynamics concentrated on consumers looking to purchase a home, consumers not looking to purchase a home, and current mortgage holder. The survey was conducted in April 2021 and hosted on Qualtrics.

The survey has a sampling error of ~3% at the total respondent level with a 95% confidence level.

Source: CoreLogic

The data provided is for use only by the primary recipient or the primary recipient's publication or broadcast. This data may not be re-sold, republished or licensed to any other source, including publications and sources owned by the primary recipient's parent company without prior written permission from CoreLogic. Any CoreLogic data used for publication or broadcast, in whole or in part, must be sourced as coming from CoreLogic, a data and analytics company. For use with broadcast or web content, the citation must directly accompany first reference of the data. If the data is illustrated with maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or website. For questions, analysis or interpretation of the data, contact Amy Brennan at newsmedia@corelogic.com. Data provided may not be modified without the prior written permission of CoreLogic. Do not use the data in any unlawful manner. This data is compiled from public records, contributory databases and proprietary analytics, and its accuracy is dependent upon these sources.

About CoreLogic

CoreLogic (NYSE: CLGX), the leading provider of property insights and solutions, promotes a healthy housing market and thriving communities. Through its enhanced property data solutions, services and technologies, CoreLogic enables real estate professionals, financial institutions, insurance carriers, government agencies and other housing market participants to help millions of people find, buy and protect their homes. For more information, please visit www.corelogic.com.

CORELOGIC and the CoreLogic logo are trademarks of CoreLogic, Inc. and/or its subsidiaries. All other trademarks are the property of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210511005273/en/

FAQ

What is the current delinquency rate for CoreLogic (CLGX) in February 2021?

The delinquency rate for CoreLogic (CLGX) in February 2021 was 5.7%, representing a 2.1 percentage point increase from February 2020.

How did CoreLogic (CLGX) report serious delinquency rates for February 2021?

CoreLogic (CLGX) reported a serious delinquency rate of 3.7% in February 2021, up from 1.2% the previous year.

What were the trends in early-stage delinquencies for CoreLogic (CLGX) in February 2021?

Early-stage delinquencies for CoreLogic (CLGX) decreased to 1.5% in February 2021, down from 1.8% in February 2020.

What impact did government support have on CoreLogic (CLGX) mortgage delinquencies?

Government support helped more borrowers stay current on their mortgages, contributing to improved consumer sentiment.

When will the next Loan Performance Insights Report from CoreLogic (CLGX) be released?

The next Loan Performance Insights Report from CoreLogic (CLGX) will be released on June 8, 2021.