mortgage monitor april

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LPS Mortgage Monitor

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April 2012 Mortgage Performance Observations

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Data as of March, 2012 Month-end

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Lender Processing Services 1

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March 2012 First LookMcDash Online Release: April 17th


DQs are at lowest level since Aug-08,FC inventory still near historic highs


Q1 2012 decline in delinquencies was 13% vs. historical average of 14.2%

Average Q1Average Q1 Decline: -14.2%


Despite slightly higher interest rates, prepayments increased in March


Increase in March prepayment rates was broad based across investor


The increase in prepayment rates also extended to lower credit scores


Originations increased from January lows.


Y/Y non-current % in non-judicial states declined; judicial is unchanged

Average year over year change in non-current percent


(includes loans 30+ Delinquent or in Foreclosure)Judicial = 0.25% Non-judicial = -7.8%

Seriously DQ inventory has declined in both judicial and non-judicial states


Foreclosure inventory in judicial states remains at all-time highs


New problem loan rates continue to improve nationally


Seasonal peak in cures was lower than the prior four years


Foreclosure starts: First-time foreclosures at 5 month high


FHA foreclosure starts are on the riseFHA foreclosure starts are on the rise


FHA/GNMA foreclosure inventory shows steady increase


Low foreclosure sales are keeping aged inventory % at historic highs


Most foreclosure outflow remains in the delinquent pipeline


Foreclosure sales were at their lowest level since December 2010


Foreclosure sales dropped sharplyin non-judicial states


FC sale decline was exclusively in private and portfolio owned loans


Pipeline ratios in the northeast and a handful of other states are still severe


National pipeline ratios are declining but still differ sharply by region


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LPS Applied Analytics:Mortgage Monitor Disclosures

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O Mortgage Monitor Disclosures

Includes product definition and extrapolation

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Disclosure Page: Product Definitions as of June month-end DataDisclosure Page: Product Definitions as of June month end Data

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


Disclosure Page: Metrics DefinitionsDisclosure Page: Metrics Definitions

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

Delinquency Statuses (30, 60, 90+, etc): All delinquency statuses are calculated using the MBA methodology based on the payment due date provided by the servicer. Loans in foreclosure are reported separately and are not included in the MBA days delinquentreported separately and are not included in the MBA days delinquent.

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

Foreclosure Inventory: The servicer has referred the loan to an attorney for foreclosure. Loans remain in foreclosure inventory from referral to saleremain in foreclosure inventory from referral to sale.

Foreclosure Starts Any active loan that was not in foreclosure in the prior month that moves 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 that moves into Foreclosure Sale / New REO: Any loan that was in foreclosure in the prior month that moves 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, this includes all

properties on and off the market. Deterioration Ratio: The ratio of the percentage of loans deteriorating in delinquency status vs. those


Deterioration Ratio: The ratio of the percentage of loans deteriorating in delinquency status vs. those improving.

Disclosure Page: Product Shifts pre and post-June 2010 ReportDisclosure Page: Product Shifts pre and post June 2010 Report

The table below contains the counts using the definitions implemented with the June 2010 and the change in count and percentage from those used prior.

Counts are based on May 2010 Data Active Loans (excludes post-sale and paid in full)


Disclosure Page: Product Shift Matrix, pre and post-June 2010 ReportDisclosure Page: Product Shift Matrix, pre and post June 2010 Report

Counts are based on May 2010 Data Active Loans (excludes post-sale and paid in f ll)full)


Disclosure Page: Industry Extrapolations pre and post-June 2010 ReportDisclosure Page: Industry Extrapolations pre and post June 2010 Report

Mortgage metrics reports produced prior to June 2010 used the following extrapolation method when estimating full industry numbers:

Active loans (non-REO) are extrapolated based on a 70% market-share assumption. REO loans prior to March 2009 are extrapolated based on a 40% market-share assumptionREO loans prior to March 2009 are extrapolated based on a 40% market share assumption REO loans from March 2009 on contain an additional adjustment for under-reporting by a

specific client.

Mortgage metrics reports produced from June 2010 on extrapolate based on vintage and product Product coverage is highlighted below Loan counts andvintage and product. Product coverage is highlighted below. Loan counts and extrapolation are based on May 2010 active loan counts (excludes post-sale and paid in full):


Performance Statistics Changes MBA DelinquencyBefore = Unextrapolated Values from prior to June 2010 Month-end data

Aft U t l t d A t l l f i i d t fl ti l f 2 dAfter Unextrapolated = Actual values from servicing data reflecting removal of 2ndsAfter Extrapolated = Changes with June 2010 data; new products and extrapolations


Performance Statistics Changes Foreclosure InventoryBefore = Unextrapolated Values from prior to June 2010 Month-end data

Aft U t l t d A t l l f i i d t fl ti l f 2 dAfter Unextrapolated = Actual values from servicing data reflecting removal of 2ndsAfter Extrapolated = Changes with June 2010 data; new products and extrapolations


Performance Statistics Changes: Foreclosure StartsPerformance Statistics Changes: Foreclosure Starts


Performance Statistics Changes: Database CountsNew Extrapolation and Product Definitions implemented with the June 2010 month-New Extrapolation and Product Definitions implemented with the June 2010 month

end data.


mortgage monitor april

Documents

riselender processing

thlender processing

powlender processing

foreclosure outflow

risefha foreclosure

fhagnma foreclosure

low foreclosure sales

fc inventory