CoreLogic Report Warns of Potential Mortgage Foreclosure Crisis in the Months Ahead

According to CoreLogic, an Irvine California based corporation that provides financial, property and consumer information, analytics and business intelligence, the U.S. could be heading towards a foreclosure crisis, due to a reported surge in June in the number of mortgages that are 90 days or more past due. Frank Nothaft, CoreLogic’s chief economist, the share of loans with payments 90 days to 119 days late quadrupled between May and June, rising to 2.3%, the highest level in more than 21 years. Measuring all loans 90 days or more overdue, including loans already in foreclosure – a gauge known as the serious delinquency rate – the share was the highest since 2015. The report notes that mortgage delinquencies have soared in recent months as Americans who lost income because of the pandemic sought forbearance agreements that allow them to suspend their home-loan payments without penalties. While they have permission to miss their payments, the mortgage industry still counts the loans as delinquent.