Some Loan Metrics Returning to Pre-Recession Averages | Topouzis & Associates, P.C.


May 13, 2019

Some Loan Metrics Returning to Pre-Recession Averages

Some Loan Metrics Returning to Pre-Recession Averages

The so-called Great Recession that began in 2008 has had a lasting effect on the real estate market. Now, just over a decade later, we are at last experiencing a return of a number of loan metrics to levels we haven’t seen since before the crisis hit. And this is a very good thing.

The Mortgage Monitor Report released by Black Knight, Inc. in early February detailed the state of December 2018’s mortgage market. According to that company’s Data and Analytics division, loan delinquencies, serious loan delinquencies, active foreclosures, and non-current inventory (including both foreclosures and delinquencies) fell to levels not experienced in the market since the crisis hit.

Indeed, the state of serious loan delinquency on the national level at the end of 2018 was only .99 percent. This is the lowest it has been since 2004—four years before the crisis began—and down a full 16 percent from just a year before. Meanwhile both foreclosure starts and foreclosure sales fell to their lowest level in a full 18 years. Only 576,000 homes went through foreclosure starts in 2018; and only 175,000 foreclosure sales were made—which is a full 25 percent fewer than in 2017.

Meanwhile, aged foreclosures—defined as loans that have been in the foreclosure pipeline for five years or longer—have fallen by 35 percent since last year. But the bad news about these loans is that they are clustered in two states. Most of them—a full 40 percent, are in New York. Our own market area of Florida contains the second-highest number of them, with 20 percent of them clustered in this state. This is due only to the pace at which foreclosures are processed, and is likely related to the jump in problems with housing this area has seen due to the recent hurricanes.

If you are looking to buy a home, we here at Topouzis & Associates, P.C. utilize our considerable expertise ensure our clients are conveying and purchasing property title clear of judgments and defects. We also help our clients put into place a good policy of title insurance to make certain they don’t get surprised by any nasty lurking issues with a property. Contact us if you’d like us to do this for you.