MReport October 2018

TheMReport — News and strategies for the evolving mortgage marketplace.

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TH E M R EP O RT | 57 SERVICING THE LATEST O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T 813.387.1100 | INFO@MCS360.COM | MCS360.COM PROPERTY INSPECTIONS | PROPERTY PRESERVATION REO PROPERTY MAINTENANCE | PROPERTY REGISTRATIONS VALUATIONS SERVICES When growing our business offerings to meet the needs of our clients we never took our eye off our core responsibility, and that's taking care of the little things for you. The MCS brand was built on customer service and a good work product, and that won't ever change. FOCUSING ON THE LITTLE THINGS IS WHAT ENSURES MCS CLIENTS DON'T HAVE BIG ISSUES. Mortgage Debt, Delinquencies Rise in Q2 Mortgage delinquencies ticked up slightly in the second quarter but remain low by historical standards. T otal household debt has risen for 16 straight quarters, reaching a new peak in the second quarter, according to the Quarterly Report on Household Debt and Credit released in mid-August by the Federal Reserve Bank of New York. Total household debt rose by $82 billion over the second quarter, landing at $13.29 trillion. This is $618 billion more than the previous peak reached in the third quarter of 2008, according to the Federal Reserve. Housing debt, which consistently composes the largest share of consumer debt, made up $9.43 trillion of consumer debt in the second quarter, while nonhousing debt contributed the remaining $3.86 trillion. Mortgage balances rose by $60 billion over the second quarter and are up $308 billion over the year as of the second quarter. New mortgage loan originations in the second quarter totaled $437 billion. "Mortgage originations have been relatively stable in the past six quarters," accord - ing to the Federal Reserve Bank of New York. Home equity lines of credit continued to decline, falling by $4 billion over the quarter and by $20 billion over the year. Home equity lines of credit total $432 billion as of the end of the second quarter. Nonhousing debt increased $26 billion in the second quarter. Auto-loan debt and credit card debt both increased over the second quarter, while student loan debt declined by $2 billion. Still, student loan debt made up the highest por - tion of nonhousehold debt in the second quarter, totaling $1.41 trillion. Auto loans were not far behind at $1.24 trillion. Serious mortgage loan delinquencies—those 90 or more days overdue—ticked up slightly over the second quarter, rising from 1.1 percent to 1.2 percent. Similarly, the rate of serious delinquen - cies among home equity lines of credit rose from 1.0 percent to 1.1 percent in the second quarter. About 76,000 foreclosures were filed dur- ing the second quarter, which is similar to the first quarter. "Foreclosures remain very low by historical standards," the Federal Reserve Bank of New York noted in its report. Student loan delinquencies declined in the second quarter but are still well above any other debt category. Student loan delinquencies fell from 8.9 percent to 8.6 percent in the second quarter.

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