Delinquencies On Second Mortgages Beginning To Show Declines
WASHINGTON-Delinquencies on second mortgages, which have remained stubbornly high for six years, declined during the fourth quarter, according to information released last week by the American Bankers Association.
The percentage of consumers who were late on paying their home equity loans fell to 4.03%, their lowest level in three quarters. For home equity lines of credit, delinquencies dropped to 1.93%, also lower than at any point since the first quarter of 2012.
Whether the declines will mark the start of a sustained improvement remains to be seen. In the second half of 2011, delinquencies on second mortgages fell before they began climbing again last year.
James Chessen, chief economist at the American Bankers Association, cautions against reading too much into data from a single quarter. Still, with household wealth and personal incomes continuing to climb - both are at or near pre-crisis highs-there's reason for optimism.
"I think it's the improved financial position of households that may explain the decline in home-related delinquencies," Chessen says.
Levels of Mortgage-Related Litigation Are Likely To Remain
DALLAS-While litigation activity in the mortgage industry has been declining, there are signs that it could remain above historic levels as foreclosure, investor and regulatory litigation persists, according to Mortgage Daily's Fourth Quarter 2012 Litigation Index.
The index shows there were 934 reported cases of litigation in 2012, a 15% increase over 2011, but litigation numbers declined in both the third and fourth quarters of last year. There were 223 cases reported in the fourth quarter, about 5% fewer than the preceding quarter and 15% fewer than the record 264 cases in the second quarter of 2012.
Ballard Spahr partner Christopher J. Willis said although the total number is gradually decreasing, the current magnitude of mortgage litigation is still higher than any of the numbers between 2007, when the index began, and Q3 2011.
VeroFORECAST Shows Housing Recovery 'Full Steam Ahead'
SANTA ANA, Calif.-The housing recovery is moving "full steam ahead" as Q2 2013 begins, with few exceptions, according to Veros Real Estate Solutions.
Veros said its VeroFORECAST for the top 100 metro areas shows 2.2% appreciation over the next 12 months. This is the third consecutive quarter where the company's index has shown forecast appreciation.
Projected as the five strongest markets: Los Angeles/Long Beach/Santa Ana (+11.8%); San Francisco/Oakland/Fremont (+11.3%); Phoenix/Mesa/Scottsdale (10.8%); San Jose/Sunnyvale/Santa Clara (+10.5%), and Midland, Texas (+9.9%).
For info: www.veros.com
