The M Report – Tory Barringer
The number of underwater borrowers dropped by nearly half from Q1 2012 to Q1 2013, Lender Processing Services (LPS) reported in its May Mortgage Monitor. According to the monthly report, the number of loans in negative equity was an estimated 7.3 million in the first quarter of 2013, down 47 percent from the approximately 15.5 million underwater loans recorded in the first quarter of last year. As of the end of Q1, the total share of mortgages with loan-to-value (LTV) ratios of greater than 100 percent was down to 14.7 percent of all currently active loans. Even in the Western “sand states,” where borrowers have struggled in recent years, LPS reported underwater loans were down as much as 53 percent year-over-year.