â€œEvery state but two saw a drop in the 90-plus day delinquency rate and the two increases were negligible,â€ said Brinkmann.
Mike Fratanoni, MBAâ€™s vice president for single family research, said the reason for the record number of foreclosures then was paperwork and processing issues.
â€œWith fewer loans exiting the foreclosure process through sales, the foreclosure inventory rate naturally increased, even as fewer foreclosure starts meant that fewer loans entered the foreclosure process,â€ he said.
Also this week, Lender Processing Services (LPS) produced its own foreclosure stats, reaching similar results. Whereas the delinquency rate was down 18.8% year-over-year at the end of 2010, the total U.S. foreclosure pre-sale inventory rate was up 7.9%. Florida, Nevada, Mississippi, Georgia and New Jersey had the highest percentage of combined foreclosures and delinquencies, according to LPS.
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This was due mostly to delayed home seizures and increased processing, however. The delinquency rate for mortgage loans dropped to 8.93%, which Mortgage Bankers Association (MBA) Chief Economist Jay Brinkmann said was where it was three years before, at the beginning of the recession in the U.S.