WERFUL SOLUTIO . : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : :                          ...
August 2012 “First Look”McDash Online Release: Sept 17th            Lender Processing Services   2
DQs are down almost 35%from peak; FCs still near highs           Lender Processing Services   3
Delinquencies and Foreclosures       State Comparison  Average year over year change in non-current percent    (includes l...
August prepayment rates hit the   highest levels since 2005           Lender Processing Services   5
Loans with equity have much higherspeeds, but HARP impact YTD is clear              Lender Processing Services   6
Prepayment increase wasbroad-based across product         Lender Processing Services   7
2007 and earlier vintages continue to     display effects of burn-out              Lender Processing Services   8
Fewer than 30% of 2007 and priorvintages remain active and current             Lender Processing Services   9
New problem loan ratesincreased slightly in August          Lender Processing Services   10
Jumbo prime non-current ratesremain over 8x pre-crisis levels            Lender Processing Services   11
90+ delinquencies are down almost        50% from the peak            Lender Processing Services   12
Signs of ongoing modification activity   remain in late stage delinquency               Lender Processing Services   13
First-time starts lowest since ’08;repeat foreclosure rate at new high              Lender Processing Services   14
Increase in foreclosure starts was  concentrated in judicial states             Lender Processing Services   15
Increase in repeat foreclosures was      greatest in GSE product             Lender Processing Services   16
First time FC starts in judicial states dropped sharply for GSE product               Lender Processing Services   17
Judicial foreclosure % near highs; non-judicial continues to decline             Lender Processing Services   18
Foreclosure sales increased inAugust; remain 33% below 2010 peak             Lender Processing Services   19
Monthly increase impacted bothjudicial and non-judicial states            Lender Processing Services   20
Increased foreclosure sales have     lowered pipeline ratios            Lender Processing Services   21
Pipeline ratios in NY, NJ and HI       are still extreme            Lender Processing Services   22
July origination volume remainedmodest (does not reflect Aug activity)               Lender Processing Services   23
WERFUL SOLUTIO . : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : :                          ...
Disclosure Page: Product Definitions            *Conforming limits do not account for temporary or high-cost area         ...
Disclosure Page: Metrics Definitions•   Total Active Count: All active loans as of month-end including loans in any state ...
With the June 2012 month-end data LPS has updated its                    month end data,extrapolation methodology to incor...
The new scaling increases overall estimated industry   loan count by approximately 1.2 million loans                      ...
New scaling reflects the higher coverage of governmentloans and allows for the incorporation of new servicers             ...
Delinquencies decline based on higherestimated coverage of FHA and subprime loans.     Converge due to new     servicers a...
Foreclosure inventory remains almost identical, butshifts up in recent months as transfer bias is repaired                ...
Foreclosure starts remain consistent, with        rates shifting up slightly               Lender Processing Services    32
Performance Statistics Changes: Database Counts                  Lender Processing Services      33
Performance Statistics Changes: State Level Detail                   Lender Processing Services        34
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LPS Mortgage Monitor - August 2012

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LPS' August Mortgage Monitor: Data Shows Loan Prepayment Activity Highest Since 2005

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LPS Mortgage Monitor - August 2012

  1. 1. WERFUL SOLUTIO . : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : LPS Mortgage Monitor September 2012 Mortgage Performance Observations ONS Data as of August, 2012 Month-endONE SOURCE. POW E Lender Processing Services 1
  2. 2. August 2012 “First Look”McDash Online Release: Sept 17th Lender Processing Services 2
  3. 3. DQs are down almost 35%from peak; FCs still near highs Lender Processing Services 3
  4. 4. Delinquencies and Foreclosures State Comparison Average year over year change in non-current percent (includes loans 30+ Delinquent or in Foreclosure) Judicial =-2.6% Non-judicial =-8.7% Lender Processing Services 4
  5. 5. August prepayment rates hit the highest levels since 2005 Lender Processing Services 5
  6. 6. Loans with equity have much higherspeeds, but HARP impact YTD is clear Lender Processing Services 6
  7. 7. Prepayment increase wasbroad-based across product Lender Processing Services 7
  8. 8. 2007 and earlier vintages continue to display effects of burn-out Lender Processing Services 8
  9. 9. Fewer than 30% of 2007 and priorvintages remain active and current Lender Processing Services 9
  10. 10. New problem loan ratesincreased slightly in August Lender Processing Services 10
  11. 11. Jumbo prime non-current ratesremain over 8x pre-crisis levels Lender Processing Services 11
  12. 12. 90+ delinquencies are down almost 50% from the peak Lender Processing Services 12
  13. 13. Signs of ongoing modification activity remain in late stage delinquency Lender Processing Services 13
  14. 14. First-time starts lowest since ’08;repeat foreclosure rate at new high Lender Processing Services 14
  15. 15. Increase in foreclosure starts was concentrated in judicial states Lender Processing Services 15
  16. 16. Increase in repeat foreclosures was greatest in GSE product Lender Processing Services 16
  17. 17. First time FC starts in judicial states dropped sharply for GSE product Lender Processing Services 17
  18. 18. Judicial foreclosure % near highs; non-judicial continues to decline Lender Processing Services 18
  19. 19. Foreclosure sales increased inAugust; remain 33% below 2010 peak Lender Processing Services 19
  20. 20. Monthly increase impacted bothjudicial and non-judicial states Lender Processing Services 20
  21. 21. Increased foreclosure sales have lowered pipeline ratios Lender Processing Services 21
  22. 22. Pipeline ratios in NY, NJ and HI are still extreme Lender Processing Services 22
  23. 23. July origination volume remainedmodest (does not reflect Aug activity) Lender Processing Services 23
  24. 24. WERFUL SOLUTIO . : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : LPS Mortgage Monitor Disclosures: Product / Metric Definitions and ONS July 2012 Market Sizing RevisionsONE SOURCE. POW E Lender Processing Services 24
  25. 25. Disclosure Page: Product Definitions *Conforming limits do not account for temporary or high-cost area increases. Lender Processing Services 25
  26. 26. Disclosure Page: Metrics Definitions• Total Active Count: All active loans as of month-end including loans in any state of delinquency or foreclosure. Post-sale loans and loans in REO are excluded from the total q y active count.• Delinquency Statuses (30, 60, 90+, etc): All delinquency statuses are calculated using the MBA methodology based on the payment due date provided by the servicer. Loans in foreclosure are reported separately and are not included in the MBA days delinquent delinquent.• 90 Day Defaults: Loans that were less than 90 days delinquent in the prior month and were 90 days delinquent, but not in foreclosure, in the current month.• Foreclosure Inventory: The servicer has referred the loan to an attorney for foreclosure. L f l Loans remain i f i in foreclosure i l inventory f t from referral t sale. f l to l• Foreclosure Starts – Any active loan that was not in foreclosure in the prior month that moves into foreclosure inventory in the current month.• Non-Current: Loans in any stage of delinquency or foreclosure. y g q y• Foreclosure Sale / New REO: Any loan that was in foreclosure in the prior month that moves into post-sale status or is flagged as a foreclosure liquidation.• REO: The loan is in post-sale foreclosure status. Listing status is not a consideration, this includes all properties on and off the market market.• Deterioration Ratio: The ratio of the percentage of loans deteriorating in delinquency status vs. those improving. Lender Processing Services 26
  27. 27. With the June 2012 month-end data LPS has updated its month end data,extrapolation methodology to incorporate, among otherthings, improved estimates of market size, which includeshigherhi h coverage of government and subprime products and f t d b i d t dincreases LPS’ estimate of the total first lien residentialmortgage market by three percent to 50.4 million.To ensure consistency in trend analysis, the newmethodology has been applied to all historical data andpreviously reported mortgage performance statistics havebeen adjusted accordingly.The following section contains information on marketcoverage and comparisons with previously reportedstatistics. Additional information is available upon request. Lender Processing Services 27
  28. 28. The new scaling increases overall estimated industry loan count by approximately 1.2 million loans Prior industry estimates declined because scaling didn’t support current servicing transfer volumes Lender Processing Services 28
  29. 29. New scaling reflects the higher coverage of governmentloans and allows for the incorporation of new servicers Lender Processing Services 29
  30. 30. Delinquencies decline based on higherestimated coverage of FHA and subprime loans. Converge due to new servicers and transfer issues with prior scaling Lender Processing Services 30
  31. 31. Foreclosure inventory remains almost identical, butshifts up in recent months as transfer bias is repaired Lender Processing Services 31
  32. 32. Foreclosure starts remain consistent, with rates shifting up slightly Lender Processing Services 32
  33. 33. Performance Statistics Changes: Database Counts Lender Processing Services 33
  34. 34. Performance Statistics Changes: State Level Detail Lender Processing Services 34
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