TransUnion Views Higher Q3 Delinquencies as Temporary

TransUnion, the national creditrnreporting company, says mortgage delinquencies inched up slightly during thernthird quarter to 5.88 percent, an increase of 1.03 percent over delinquenciesrnin the second quarter.  According to therncompany this increase follows six consecutive quarters when the delinquencyrnrate steadily declined and it probably transitory.  TransUnion includes loans that are 60 or morerndays delinquent in their analysis.</p

The increase was widely felt withrnall but 10 states and the District of Columbia experiencing increases as wellrnas 64 percent of metropolitan areas.  Inrnthe first and second quarters of the year increases were noted in 32 percentrnand 21 percent of MSAs respectively.</p

The states with the highest delinquencyrnrates were, as usual, Florida at 14.08 percent and Nevada as 12.39.  New Jersey, a state that hasn’t previouslyrnbeen notable, was third at 7.60 percent. rnThat state saw a 7.50 percent increase in delinquencies over thernpreceding year.  Arizona was fourth atrn7.46 percent but that was still an improvement from the 9.96 delinquency rate inrnthe third quarter of 2010. </p

In addition to Arizona substantialrnyear-over-year improvement occurred California, down 24.4 percent, and Utahrnwhere delinquencies fell 19.12 percent.  rnIn addition to New Jersey, delinquencies increased appreciably inrnVermont (+15.6 percent) and Oklahoma (6.83 percent.)</p

The average mortgage debt in thernU.S. in Quarter Three was $190,382, up 0.62 percent from Quarter Two.  The highest borrower debt is in the Districtrnof Columbia ($374,241) and the lowest in West Virginia ($101,533.)</p

TransUnion forecasts delinquencyrnrates to drift downward in 2012 but says that, in the short run, there may be arnquarter or two of slightly elevated nonpayment rates “as some consumers are notrnable to, or decide not to, repay their mortgage debt obligations in light ofrnthe uncertain economic outlook.”

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