Industry NewsMortgage

REO inventory swells again

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The number of homeowners who were 90 days or more late on their mortgages or in the foreclosure process continued to ease during May, but inventories of bank-owned properties grew for the fifth month in a row, according to the latest statistics collected from loan servicers by Lender Processing Services."Real estate owned," or REO inventory -- properties repossessed by lenders -- stood at 1.13 million, up less than 1 percent from April, but a 21.2 percent increase from a year ago, LPS said. In addition, 30- and 60-day delinquencies both posted increases from April to May as seasonal improvements in early-stage delinquencies tapered off, ensuring a steady stream of homes will continue to flow into the foreclosure pipeline.The latest LPS Mortgage Monitor report showed that the average number of days for a loan to move from 30 days delinquent to foreclosure sale continues to increase, to an all-time high of 449 days, meaning that many homes whose owners are newly delinquent won'...