TransUnion Views Higher Q3 Delinquencies as Temporary

TransUnion, the national credit reporting company, says mortgage delinquencies inched up slightly during the third quarter to 5.88 percent, an increase of 1.03 percent over delinquencies in the second quarter.  According to the company this increase follows six consecutive quarters when the delinquency rate steadily declined and it probably transitory.  TransUnion includes loans that are 60 or more days delinquent in their analysis.

The increase was widely felt with all but 10 states and the District of Columbia experiencing increases as well as 64 percent of metropolitan areas.  In the first and second quarters of the year increases were noted in 32 percent and 21 percent of MSAs respectively.

The states with the highest delinquency rates were, as usual, Florida at 14.08 percent and Nevada as 12.39.  New Jersey, a state that hasn't previously been notable, was third at 7.60 percent.  That state saw a 7.50 percent increase in delinquencies over the preceding year.  Arizona was fourth at 7.46 percent but that was still an improvement from the 9.96 delinquency rate in the third quarter of 2010.

In addition to Arizona substantial year-over-year improvement occurred California, down 24.4 percent, and Utah where delinquencies fell 19.12 percent.   In addition to New Jersey, delinquencies increased appreciably in Vermont (+15.6 percent) and Oklahoma (6.83 percent.)

The average mortgage debt in the U.S. in Quarter Three was $190,382, up 0.62 percent from Quarter Two.  The highest borrower debt is in the District of Columbia ($374,241) and the lowest in West Virginia ($101,533.)

TransUnion forecasts delinquency rates to drift downward in 2012 but says that, in the short run, there may be a quarter or two of slightly elevated nonpayment rates "as some consumers are not able to, or decide not to, repay their mortgage debt obligations in light of the uncertain economic outlook."