October Mortgage Monitor Report Shows Delinquencies, Foreclosures at Record Highs

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(JACKSONVILLE, FL) -- The October Mortgage Monitor just released by Lender Processing Services, Inc. (NYSE: LPS), shows record high rates for non-current loans, as well as an upswing in loan production volume over the previous year. Published by LPS, a leading provider of mortgage performance data and analytics, the October 2009 Mortgage Monitor report is an in-depth summary of mortgage industry performance indicators based on data collected as of September 30, 2009.

Foreclosure inventories continued their upward climb. The nation's September 2009 foreclosure rate stood at 3.12 percent - a month-over-month increase of 2.6 percent and a year-over-year increase of 88.9 percent. Among individual states, Florida posted the most troubling results with 10.4 percent of loans in foreclosure, and more than 22 percent of loans reported as non-current.

LPS' October Mortgage Monitor also cites large "shadow" foreclosure and REO inventories. The number of loans deteriorating further into delinquent status is now more than twice the number of foreclosure starts, indicating another major wave of troubled loans in an already clogged loan pipeline. Nearly one-third of foreclosures remain in pre-sale status after 12 months - twice as many as the year prior. The six-month average deterioration ratio has risen the past two months to 300 percent, showing that for every loan that improves in status, three more deteriorate further.

Positive results included higher loan production totals for 2009 compared to the same time frame in 2008 based on LPS' mortgage data repository covering more than 40 million loans. Year-to-date 2009 loan totals were 2,032,973 (28 percent FHA) versus 1,903,723 (16 percent FHA) for the same period in 2008.

Other key results from LPS' October Mortgage Monitor include:

• Total U.S. loan delinquency rate:       9.37 percent

• Total U.S. foreclosure inventory rate:  3.12 percent

• Total U.S. non-current* loan rate:      12.49 percent

• States with most non-current* loans:    Florida, Nevada, Mississippi, Arizona, Georgia, California, Michigan, Indiana, Ohio and Illinois

• States with fewest non-current* loans:  North Dakota, South Dakota, Wyoming, Alaska, Montana, Nebraska, Vermont, Colorado, Oregon and Washington

*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.

**Totals based on LPS Applied Analytics' loan-level database of mortgage assets.

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