/PRNewswire/ -- The July Mortgage Monitor report released by Lender Processing Services, Inc. (NYSE:LPS) shows that foreclosure starts are on the rise, with seriously delinquent loans - those six or more months delinquent - dominating new foreclosure actions.
The increase in foreclosure starts is consistent with the Department of Treasury's latest report that approximately half of all Home Affordable Modification Program (HAMP) trial modifications resulted in cancellation, though 45.4 percent of those have resulted in alternative (non-HAMP) modifications.
Delinquent and foreclosure inventories continue to stabilize but have yet to show annual declines. Continuing the trend from June, agency prime loans have seen the greatest month-over-month increase in foreclosure inventory and the second highest percentage increase since January 2009. Only non-agency jumbo prime loans have experienced a greater increase during the same period, but the month-over-month results indicate that this inventory has begun to decline.
The report also shows that approximately 895,000 loans that were current at the beginning of January are at least 60 days delinquent or in foreclosure as of the end of July - a month-over-month increase of 120,000 loans. Cure rates remain steady overall, but seriously delinquent cures have declined significantly, by approximately 25 percent, which is consistent with the decline in permanent modifications established during the month of July.
Other key results from LPS' latest Mortgage Monitor report include: Total U.S. loan delinquency rate: 9.33 percent Total U.S. foreclosure inventory rate: 3.75 percent Total U.S. non-current* loan rate: 13.08 percent States with most non-current* Florida, Nevada, Mississippi, loans: Georgia, Arizona States with the fewest non- North Dakota, South Dakota, current* loans: Alaska, Wyoming, Montana *Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state. Note: Totals based on LPS Applied Analytics' loan-level database of mortgage assets.
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