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LPS' March Mortgage Monitor: New Problem Loan Rates Hit Six-Year Low; Negative Equity Drops 41 Percent Year-Over-Year



LPS' March Mortgage Monitor: New Problem Loan Rates Hit Six-Year Low; Negative
                    Equity Drops 41 Percent Year-Over-Year

PR Newswire

JACKSONVILLE, Fla., May 6, 2013

JACKSONVILLE, Fla., May 6, 2013 /PRNewswire/ -- The March Mortgage Monitor
report released by Lender Processing Services (NYSE: LPS) found that new
problem loan rates (seriously delinquent mortgages that were current six
months ago) have fallen below 1 percent for the first time since 2007. At 0.84
percent, the March new problem loan rate is approaching pre-crisis levels, and
nearing the conditions of 2000-2004 when the rate averaged 0.55 percent.
However, as LPS Applied Analytics Senior Vice President Herb Blecher
explained, a borrower's equity position is still a key indicator of his or her
propensity to default.

(Logo: http://photos.prnewswire.com/prnh/20120802/FL50731LOGO)

"There has always been a clear correlation between higher levels of negative
equity and new problem loan rates," Blecher said. "Looking at the March data,
we see that borrowers with equity are actually outperforming the national
average -- at 0.6 percent, this group is quite close to pre-crisis norms. The
further underwater a borrower gets, the higher those problem rates rise.
Borrowers with loan-to-value (LTV) ratios of just 100-110 percent are actually
defaulting at more than twice the national average. For those 50 percent or
more underwater, we see new problem rates of 4 percent.

"Still, the overall equity trend has been a very positive one," Blecher
continued. "LPS' latest data shows that the share of loans with LTVs greater
than 100 percent has fallen 41 percent from a year ago. In total, there were
approximately 9 million such loans, or about 18 percent of active mortgages.
Some states, including the so-called 'sand states' (Arizona, Florida, Nevada
and California), are still well above the national level, at an average 28
percent, but they, too, have seen improvement over the last year, with
negative equity dropping over 40 percent across those four states since
January 2012."

The March data also showed that on the national level, foreclosure starts were
down 8.2 percent month over month, while foreclosure sales rose 10.1 percent.
LPS looked more specifically at that situation in California, where the recent
passage of the Homeowner Bill of Rights (HBoR) appears to have slowed down the
foreclosure sale process considerably. In Q1 2013, foreclosure sales
nationally (excluding California) increased 13 percent from Q4 2012, whereas
in California they fell 35 percent during that same period. However, the HBoR
does not seem to have had a similar effect on the state's foreclosure starts
which, while down significantly from 2012 levels, are in line with the rest of
the nation's decline in referral activity following the attorneys general
mortgage settlement and FHA modification initiatives.

As reported in LPS' First Look release, other key results from LPS' latest
Mortgage Monitor report include:

Total U.S. loan delinquency rate:                          6.59%
   
Month-over-month change in delinquency rate:               -3.13%
Total U.S. foreclosure presale inventory rate:             3.37%
Month-over-month change in foreclosure pre-sale inventory  -0.41%
rate:
States with highest percentage of non-current*             FL, NJ, MS, NV, NY
loans:            
States with the lowest percentage of non-current*          MT, AK, WY, SD, ND
loans:         
*Non-current totals combine foreclosures and delinquencies as a percent of
active loans in that state.
Totals are extrapolated based on LPS Applied Analytics' loan-level database of
mortgage assets.

To view the Mortgage Monitor Snapshot, LPS' new video version of the Mortgage
Monitor, go to
http://www.lpsvcs.com/LPSCorporateInformation/MultimediaLibrary/Pages/Video-Library.aspx?ListName=Video&ItemName=MMmarch1-3_1.wmv

About the Mortgage Monitor

LPS manages the nation's leading repository of loan-level residential mortgage
data and performance information on nearly 40 million loans across the
spectrum of credit products. The company's research experts carefully analyze
this data to produce a summary supplemented by dozens of charts and graphs
that reflect trend and point-in-time observations for LPS' monthly Mortgage
Monitor Report. To review the full report, visit
http://www.lpsvcs.com/LPSCorporateInformation/CommunicationCenter/DataReports/Pages/Mortgage-Monitor.aspx

About Lender Processing Services

Lender Processing Services (NYSE: LPS) delivers comprehensive technology
solutions and services, as well as powerful data and analytics, to the
nation's top mortgage lenders, servicers and investors. As a proven and
trusted partner with deep client relationships, LPS offers the only end-to-end
suite of solutions that provides major U.S. banks and many federal government
agencies the technology and data needed to support mortgage lending and
servicing operations, meet unique regulatory and compliance requirements, and
mitigate risk.

These integrated solutions support origination, servicing, portfolio retention
and default servicing. LPS' servicing solutions include MSP, the industry's
leading loan-servicing platform, which is used to service approximately 50
percent of all U.S. mortgages by dollar volume. The company also provides
proprietary data and analytics for the mortgage, real estate and capital
markets industries.

LPS is headquartered in Jacksonville, Fla., and employs approximately 8,000
professionals. The company is ranked on the Fortune 1000 as the 877^th largest
American company in 2012. For more information, please visit www.lpsvcs.com.

 

SOURCE Lender Processing Services

Website: http://www.lpsvcs.com
Contact: Media: Michelle Kersch, (904) 854-5043, Michelle.kersch@lpsvcs.com,
Investor: Nancy Murphy, (904) 854-8640, Nancy.murphy@lpsvcs.com
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