Saturday, July 20, 2024

Report: Louisiana delinquent mortgages fell by 23.71%, but still is the second highest rate in U.S.

by BIZ Magazine

By Victor Skinner | The Center Square contributor

A new report shows the percentage of noncurrent mortgages in Louisiana fell 23.71% over the last year to 5.65%, the second highest number in the nation.

Louisiana followed only Mississippi’s 6.41% of mortgages in the state that were not current in June, according to a report from the mortgage software, data and analytics company Black Knight Inc.

The 5.65% noncurrent percentage is the second lowest figure for Louisiana since 2005, slightly higher than the 5.43% in May 2022.

Other states in the top five by noncurrent percentage include Alabama at 4.72%, Oklahoma at 4.69%, and West Virginia at 4.68%.

Louisiana’s percentage of mortgages that were at least three months delinquent was also in the top five nationally, again following only Mississippi at 2.43%. In June Louisiana was at 2.11%, a decrease of 54% from the year prior. Other states in the top five for that metric included Alabama, Alaska and Maryland.

The Bayou State fared somewhat better in the six month change in percentage of noncurrent mortgages, dropping 19.99%, the fourth largest drop nationally, behind the District of Columbia’s 21.83%, Hawaii’s 21.82% and Nevada’s 20.56%, according to Black Knight.

The noncurrent totals combine foreclosures and delinquencies as a percent of active loans in each state, extrapolated based on Black Knight’s loan-level database of mortgage assets.

Nationally, the delinquency rate rose nine basis points from May to 2.84% after hitting record lows for three consecutive months. The delinquency rate nationally is up 3.31% from May to June, but has dropped 35.10% since June 2021.

The increase involved both the number of borrowers a single payment past due, which rose 5%, as well as 90-day delinquencies, which broke a 21 month streak of improvement to tick up 1% from May.

Foreclosure starts were also up 27% in June to 23,800, though they remained 40% below pre-pandemic levels. The increase marks a 441% jump year over year, following pandemic-driven lows. A 4% of foreclosure starts involving serious delinquencies is also the highest figure since March 2020, though it’s less than half the rate in years leading up to the pandemic.

The lifting of widespread moratoriums and forbearance protections in recent years is also increasing foreclosure inventory, which jumped by 16,000 in June to 190,000, or about 45,000 more than June 2021.

Meanwhile, prepayment activity is on the decline, dropping another 7% in June. Prepayments are now down 64% from June 2021, as rising rates are holding down purchase and refinance lending, Black Knight reports.

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