National Delinquency Survey and Shadow Inventory

National Delinquency Survey shows a total of around 6.4 million first-lien loans in some stage of delinquency.

Palm Coast, FL – October 16, 2010The Mortgage Bankers Association’s National Delinquency Survey (NDS), which was first conducted in 1953, looks at 46 million loans on one-to-four-unit residential properties, representing over 80 percent of all "first-lien" residential mortgage loans outstanding in the United States. As of the end of the second quarter data, collected via the National Delinquency Survey, showed a total of around 6.4 million first-lien loans in some stage of delinquency. While not all of these loans represent shadow inventory, a large share of them do.
Mortgage Delinquency GraphAccording to the data, shown in the graph, there are around 2.034 million properties in the foreclosure inventory. 520,750 of those were new foreclosures that started in the second quarter. Further, there are over 2.145 million loans 90+ days late, over 676,000 60-90 days late, and 1.562 million 30-60 days late.
Prior to the most recent problem with poor paperwork in foreclosure filings, the transition of seriously delinquent loans into foreclosure continued to accelerate. As a result, foreclosure inventories grew. Delinquencies continued to trend down with the first year-over-year decline since 2006. Overall, new seriously delinquent loans have been declining. The percent of seriously delinquent loans that were current six months prior peaked in January 2009 at 2.92 percent and were down to 1.65 percent in August 2010. Problems remain in the same states, i.e. the states with the highest rates of foreclosure starts are also experiencing extremely high rates of new seriously delinquent loans.
This is one in a series of commentaries by the Research staff of the National Association of REALTORS®.

©Copyright National Association of REALTORS®, Reprinted from with permission.

2 replies
  1. charles toll
    charles toll says:

    was everyone really entitled to a house?

    This is a national disgrace going back to the clinton admin pushed through by andrew como to relax the rules of fannie and freddy and implemented by dodd, conyers, waters, barney frank. they are hiding in the woodwork now.

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