Mortgage delinquencies in May posted thelargest year-to-date drop seen since 2002, Lender Processing Services (LPS) said today. Delinquencies were down 15 percent from the end of December 2012 to a May rate of 6.08 percent. This was a drop of 2.11 percent from April. LPS Applied Analytics Senior Vice President Herb Blecher said that much of this improvement is supported by the fact that new problem loan rates are approaching the pre-crisis average.
Blecher said, “Though they are still approximately 1.4 times what they were, on average, during the 1995 to 2005 period, delinquencies have come down significantly from their January 2010 peak. Fewer problem loans are coming into the system, the existing ones are working their way through the pipeline. New problem loan rates are now extremely close to average.