The share of mortgages nationwide that went from current to 30-days past due was 0.8 percent in May 2017, compared with 0.9 percent in May 2016 and approaching a 10-year-low, according to a recent report from CoreLogic, a global property information firm.

Nationwide, 4.5 percent of mortgages were 30 or more days delinquent in May 2017, down 0.8 percent from May 2016, when that number was 5.2 percent.

The news was slightly better in Massachusetts, where 4.3 percent of mortgages were 30 or more days delinquent in May 2017, down 0.9 percent from May 2016, when 5.2 percent of mortgages were delinquent.

“A prolonged period of relatively tight underwriting criteria has driven delinquencies down to pre-crisis levels across many parts of the country,” CoreLogic CEO Frank Martell said in a statement. “As pressure to relax underwriting standards increases, the industry needs to proceed carefully and take progressive, sensible actions that protect hard-fought improvements in mortgage performance.”

The nationwide foreclosure rate dropped to 0.7 percent in May 2017, down from 1.0 percent in May 2016. The Massachusetts foreclosure rate dropped to 0.8 percent in May 2017, down from 1.1 percent in May 2016.

“Strong employment growth and home price increases have contributed to improved mortgage performance,” CoreLogic chief economist Frank Nothaft said in a statement. “Early-stage delinquencies are hovering around 17-year lows and current-to-30-day past due transition rate remained low at 0.8 percent. However, the same positive economic conditions helping performance have also contributed to the lack of affordable supply creating challenges for homebuyers.”

Loan Delinquencies Approach 10-Year Low In May

by Banker & Tradesman time to read: 1 min
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