LENDER PROCESSING SERVICES, INC. 
By
JACKSONVILLE, Fla. - January 27, 2012 - The December Mortgage
Monitor report released by Lender Processing Services (NYSE:
LPS) shows mortgage originations continued their decline from
2011's September peak, down 10.1 percent from the month
before. At the same time, those loans originated over the
last two years have proven to be some of the best quality
originations on record. Likely a result of tighter lending
requirements, 2010-11 vintage originations showed 90-day
default rates below those of all other years, going back to
2005. December origination data also shows that recent
prepayment activity - a key indicator of mortgage refinances
- has remained strong, with 2008-09 originations, high credit
score borrowers and government-backed loans having benefited
the most from recent, historically low interest rates.
Looking at judicial vs. non-judicial foreclosure states, LPS
found that half of all loans in foreclosure in judicial
states have not made a payment in more than two years.
Foreclosure sale rates in non-judicial states stood at
approximately four times that of judicial foreclosure states
in December. Still, on average, pipeline ratios (the time it
would take to clear through the inventory of loans either
seriously delinquent or in foreclosure at the current rate of
foreclosure sales) have declined significantly from earlier
this year.
The December mortgage performance data also showed that
foreclosure starts continued to decline, remaining at
multi-year lows as of the end of 2011; down 3.7 percent for
the month, and nearly 40 percent for the year.
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© Publicnow - 2012
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