Industry NewsMortgage

Bad loans hit new high in February

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An estimated 7.5 million homeowners are behind on their mortgage or in the foreclosure process, and another 1 million homes are bank-owned (also known as real estate owned or REO) after being foreclosed on by lenders, according to a new report from Lender Processing Services Inc. The LPS February 2010 Mortgage Monitor report, which is based on data extrapolated from the company's servicing database, showed that the pace of delinquencies was slowing, but that the U.S. delinquency rate remains at an all-time high of 10.2 percent.All told, 13.5 percent of active loans were delinquent or in foreclosure, LPS said. The states with the greatest number of non-current loans were Florida, Nevada, Mississippi, Arizona, Georgia, California, Indiana, Michigan and Ohio.Loan servicers modified the terms of 2 million loans in 2009, including Home Affordable Modification Program (HAMP) trial modifications, LPS said. But an even greater number of loans -- 2.5 million -- that were current at the beginnin...