Lps Mortgage Monitor Oct 2012

7/30/2019 Lps Mortgage Monitor Oct 2012

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LPS Mortgage Monitor

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November 2012 Mortgage Performance Observations

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Data as of October, 2012 Month-end

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Lender Processing Services 1

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Focus 1 Summary:

Monthly Mortgage Performance

issues related to short month resolved

NMS; associated drop in foreclosure

Longer term DQ and FC trends improving

Delinquencies >30% lower than Jan-10 peak

Watch foreclosure activity over the coming


months


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DQs in-line with seasonal trends; FCsdown almost 7% due to lower starts

Early stage self cures andmodification dominated late

stage cures drove drop in DQs(Appendix, Slide 18)



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NMS drove a drop in FC starts; expecta rebound in coming months

Settlement requires 14 day notice to

borrowers prior to referral; letters weresent in September and October



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Focus 2 Summary:

HPI and Home Sales

pace for 5-7% YoY appreciation by Dec-12

distressed transactions at historic highs ver t e pr or mont s:

4.07 million total transactions

REOs = 16.1% (656k)

Short Sales = 16.2% (661k)



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National houseprices are down22.8% from theune pea



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Almost one third of all transactionsover the prior year were distressed

12 months throu h Se -12

12 month sales peakedat 8.2 million in Nov-05

4.1 million total sales(1.3 million distressed)



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Focus 3 Summary:

Originations and Characteristics

shortened month, but expect a rebound

Non-government originations continue to

Mortgage spreads continue to be wide; FHA

st support ng g est r s orrowers



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Sept originations dropped with shortmonth; higher Private / Portfolio share

2009: 9% 2010: 11%2011: 13% 2012: 16%



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Mortgage spreads remain elevated;rates consistent across product

138 b s197 bps



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Focus 4 Summary: Foreclosure

process disparities and impacts

significant impact on pipeline ratios , ,

examples

effect in January

-judicial foreclosure timelines and inventory-



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Impact of FC reform in NV lower vs.other states; CA to change in Jan-13

NV pipeline ratio hasdoubled since Oct-11

Homeowners Bill ofRights begins Jan-13



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FC inventory in judicial statesremains over 3x non-judicial

Seven of the top 10 states for

total non-current are judicial(Appendix, slide 17)



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November 2012 Appendix

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Data as of October, 2012 Month-end

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Cures jumped with October make-up payments and modifications



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Drop in foreclosure starts supported adrop in overall inventory



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Prepayment speeds rebounded inOctober indicating more originations



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Disclosures: Product / Metric Definitions and

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*Conforming limits do not account for temporary or high-cost areaincreases.



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Total Active Count: All active loans as of month-end including loans in any state ofdelin uenc or foreclosure. Post-sale loans and loans in REO are excluded from the totalactive count.

Delinquency Statuses (30, 60, 90+, etc): All delinquency statuses are calculated usingthe MBA methodology based on the payment due date provided by the servicer. Loans in

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90 Day Defaults: Loans that were less than 90 days delinquent in the prior month andwere 90 days delinquent, but not in foreclosure, in the current month.

Foreclosure Inventory: The servicer has referred the loan to an attorney fororec osure. oans rema n n orec osure nven ory rom re erra o sa e.

Foreclosure Starts Any active loan that was not in foreclosure in the prior month thatmoves into foreclosure inventory in the current month.

Non-Current: Loans in any stage of delinquency or foreclosure.

Foreclosure Sale / New REO: Any loan that was in foreclosure in the prior month thatmoves 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,


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Deterioration Ratio: The ratio of the percentage of loans deteriorating in delinquency

status vs. those improving.


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- ,extrapolation methodology to incorporate, among otherthings, improved estimates of market size, which includes

g er coverage o governmen an su pr me pro uc s an

increases LPS estimate of the total first lien residentialmortgage market by three percent to 50.4 million.

To ensure consistency in trend analysis, the new

previously reported mortgage performance statistics havebeen adjusted accordingly.

The following section contains information on marketcoverage and comparisons with previously reported


statistics. Additional information is available upon request.


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The new scaling increases overall estimated industry

loan count by approximately 1.2 million loans

because scaling didnt supportcurrent servicing transfer volumes



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New scaling reflects the higher coverage of government

loans and allows for the incorporation of new servicers



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Foreclosure inventory remains almost identical, but

shifts up in recent months as transfer bias is repaired



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Foreclosure starts remain consistent, with

rates shifting up slightly



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Lps Mortgage Monitor Oct 2012

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