Despite an increase in the third quarter, the total mortgage delinquency rate fell during 2012, an indication that the housing market is slowly making a comeback.
The total delinquency rate decreased 9.06 percent from November 2011 after an increase in November. The normal delinquency rate, however, ranges between 4.5 and five percent, AGBeat reports.
The percent of mortgage loans in the foreclosure process also fell in November, reaching the lowest level since 2009. Data from Lender Processing Services revealed that 1,767,000 homes are in the foreclosure process, and the number is decreasing.
Housing prices, meanwhile, have risen 3.8 percent since November 2011, one of the largest increases since 2007, according to Credit Unions Online.
If lending trends continue into the new year, credit unions will see record mortgage lending in 2013. Credit unions are on track to surpass $100 billion in mortgage loan originations for the first time in the sector’s history.
Barbara H. Martin, the segment marketing sales leader at Genworth Mortgage Insurance Corp., said that company expects the housing recovery to continue into 2013.
“That means more opportunity for credit unions to increase their mortgage origination business and capture a share of the profits available through mortgage origination,” Martin said, Credit Unions Online reports. “Members value being able to get a mortgage from a lender they trust, and credit unions are well-positioned to meet that demand.”