Data Briefs

Mortgage Lending Patterns in Fourth District Communities as of July 2009

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These data briefs provide periodic snapshots of mortgage lending activity and foreclosure patterns in our district at the state and county level. The 4th Federal Reserve District comprises the state of Ohio, the western third of Pennsylvania, the eastern half of Kentucky, and the northern panhandle of West Virginia. Delinquency and foreclosure data are from LPS and MBA.* The data include loan level servicing data for both securitized loans and loans held in portfolio from the top 10 residential mortgage servicers in the nation and others. Smaller servicers have less representation. MBA data is offered as a comparison and is at the state level.

Four things stand out in our analysis of the data available from July 2009:

  1. The 4th District states all see continuing rises in delinquencies in both prime and subprime loans.
  2. Ohio continues to be tops in both categories (prime and subprime delinquencies).
  3. Pennsylvania has the lowest default rate in the prime category and West Virginia has the lowest subprime rate.
  4. The percentage of subprime loans ending up in REO status rose rapidly between 2006 and mid 2008 before falling off precipitously by July of this year. The percentage of prime loans entering REO status, however, has remained fairly constant over time. We will explore this dynamic in our next issue.

We've charted the most recent data in several ways, to show trends, distribution, and a listing of the top and bottom 15 counties. (Check out this detailed, county-specific map of the 4th District.)

Trends in Prime versus Subprime Mortgage Delinquencies

Percentage of prime loans that were seriously delinquent Percentage of subprime loands that were seriously delinquent

Charts correspond to full-state statistics.

*Please see the previous issue of Mortgage Lending Patterns for an explanation of the differences between LPS and MBA data.

Delinquency Rates by County, July 2009

Top 15 (highest)

State County Loans Serviced L/EMU Delinquency
OH Highland 1,370 18.20% 13.65%
OH Putnam 506 8.16% 13.24%
OH Fayette 924 17.62% 13.21%
OH Mahoning 12,627 28.02% 12.27%
OH Trumbull 12,207 30.94% 12.25%
OH Allen 2,929 16.10% 12.22%
OH Defiance 929 12.23% 12.16%
OH Coshocton 927 16.19% 11.98%
OH Pike 635 15.96% 11.80%
OH Henry 831 14.40% 11.67%
OH Cuyahoga 90,722 38.22% 11.60%
OH Adams 757 18.12% 11.49%
OH Crawford 1,518 18.83% 11.40%
OH Ashtabula 5,900 32.76% 11.35%
OH Brown 2,093 24.62% 11.24%

Bottom 15 (lowest)

State County Loans Serviced L/EMU Delinquency
KY Rowan 668 22.20% 5.70%
KY Laurel 1,964 22.57% 5.65%
PA Allegheny 108,453 49.23% 5.48%
PA Westmoreland 29,801 44.35% 5.46%
KY Boone 13,199 53.47% 5.45%
PA Somerset 3,659 31.39% 5.30%
PA Washington 16,443 42.89% 5.29%
OH Athens 1,893 25.10% 5.23%
WV Ohio 1,849 24.70% 5.08%
KY Scott 4,728 57.80% 4.99%
OH Mercer 2,055 29.40% 4.76%
OH Delaware 21,423 56.21% 4.54%
KY Fayette 28,762 54.22% 4.18%
PA Butler 16,147 46.39% 3.85%
KY Woodford 2,415 47.00% 3.27%
  • Delinquency rates are defined as loans at least 60 days delinquent, including those in foreclosure.
  • At least 70% of county's housing units are in rural areas.
  • At least 70% of county's housing units are in urban areas.
  • L/EMU: Loans in the database as a % of estimated mortgage units in the county, according to the American Community Survey (2005-2007)
  • Source: LPS(Lender Processing Services Inc.) Applied Analytics

Distribution by County of Loans 60 Days Delinquent or in Foreclosure

Percent of loans at least 60 days delinquent

Delinquency Rates by County, as of July 2009

The top 15 list remains the exclusive territory of Ohio counties, new additions include Putnam, Henry, Crawford, and Ashtabula, while Williams, Guernsey, Clinton, and Muskingum drop off the list. Since the first quarter of 2009 delinquency/foreclosure rate ranges have widened for both the top and bottom 15 counties; the top 15 now encompasses rates from just over 11% to almost 14% and the bottom 15 goes from just over 3% to almost 6%. Note that the top 15 county rates are estimated based on a smaller sample when compared to the bottom 15 counties (compare L/EMU values in the list).