LPS' Mortgage Monitor Report Shows Seasonal Increase in April Delinquencies

The April Mortgage Monitor report released by Lender Processing Services, Inc. LPS shows an expected historical seasonal increase in delinquencies, but a continuing trend in fewer new problem loans. While April is consistently the month with the largest increases in new delinquencies, in 2011 this increase was the largest it has been in a number of years. At the same time, though delinquencies increased by 2.4 percent in April, they still remain well below the levels of January of this year and more than 25 percent lower than the peak seen in January 2010. The April data shows that new problem loans, currently at 1.28 percent, have hit three-year lows, with the rate now at less than half of 2009's peak levels. The report also shows the impact of the ongoing process reviews and moratoria as both foreclosure starts and sales decreased significantly in April. Foreclosure starts were down nearly 31 percent from the prior month, while foreclosure sales also declined and remain well below pre-moratoria levels.