Mortgage Delinquencies @ Pre-recession Levels

News for our Debt and Credit Markets!

Mortgage Delinquencies are now officially back to pre-recession rates.   A mortgage delinquency rate is the percentage of borrowers that are at least 60 days past due on their mortgage.   Current Mortgage delinquency rates are 2.95%.   The last time the US saw mortgage delinquency rates below 3% was third quarter, 2007, before the recession changed the real estate and mortgage industry, seemingly forever.

This great news comes to us from the organization that keeps tabs on, and reports on, all of our credit ratings, TransUnion.

“It’s taken more than seven years, but the mortgage delinquency rate has reached pre-recession levels. We continue to see a steady decline in the mortgage delinquency rate, primarily driven by strong performance by newer vintage loans,” said Joe Mellman, vice president and head of TransUnion’s mortgage group. “It’s also encouraging to see continued delinquency rate declines for the subprime and near-prime risk groups.”

How Florida Stacks up on Mortgage Delinquencies

Florida mortgage delinquency rates are still trending above the national average at 5.15%, however our fair state did see the largest one year decline, dropping 32.14% from Q1 2014 (7.6%) to Q1, 2005.

Great Recession, Rear View Mirror

It is great to see the great recession in our rear view mirror.  One would think that fewer delinquencies mean bad times for those of us in the business of collecting debt.  Truth be told, the enormous backlog of debt and the lack of options for debtors and creditors in the worst of the recession made court actions at best lethargic, at worst impossible.  Now that the backlogs have been lifted, and the economic system has gained back equilibrium, we are once again able to effectively use the court system and other resources effectively in the collection of debt.

We are pleased, as debt collection attorneys in Florida, to see equilibrium return to our real estate market, and see it as a bellwether for the rest of the debt markets in Florida.

Thank You to TransUnion for providing the details for this article, and to Credit and Collection News for bringing this moment to our attention.