Mortgage Delinquency Spikes in TransUnion Q4 Report

TransUnion is reporting that seriousrnmortgage delinquencies rose during the fourth quarter of 2011 for only thernsecond time since the end of 2009.  Thernrate increased 13 basis points from 5.88 percent in the third quarter to 6.01rnpercent.  </p

The increase was widespread; 37rnpercent of the states reported increases as did 64 percent of metropolitanrnareas.  The latter figure is unchangedrnfrom Quarter 3 but up substantially from the 21 MSAs that experienced anrnincrease in Quarter 2.  New Jersey andrnVermont had the largest annual increases. rnTheir delinquency rates rose between Quarter 4, 2010 and Quarter 4, 2011rnby 11.98 percent and 11.11 percent respectively.  South Dakota had an increase of 10.36rnpercent.  Arizona, California, andrnWyoming had the greatest decreases in their rates, all three in the range of 20rnpercent. </p

The highest serious delinquencyrnrates, defined as over 60 days, were reported in Florida (14.27 percent),rnNevada (12.08 percent) New Jersey (8.32 percent) and Arizona (7.50 percent) andrnthe lowest rates in North Dakota (1.50 percent), South Dakota (2.45 percent),rnNebraska (2.57 percent) and Alaska (2.77 percent).</p

“To see that, quarter overrnquarter, fewer homeowners were able to make their mortgage payments is notrnwelcome news,” said Tim Martin, group vice president of U.S. Housing inrnTransUnion’s financial services business unit. “However, it was notrnunexpected. First, there tends to be a natural seasonality, evident well beforernthe recession, of higher delinquencies in the fourth quarter; perhaps explainedrnby borrowers balancing holiday spending vs. debt payments. Secondly, on therneconomic front, house prices continued to deteriorate in the fourth quarter andrnunemployment remained stubbornly high. This combination leads to more negativernequity in homes and reduced real personal income that can affect borrowers’rnability and willingness to pay their mortgages.

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