Monday, June 08, 2015

Black Knight April Mortgage Monitor

by Bill McBride on 6/08/2015 08:06:00 AM

Black Knight Financial Services (BKFS) released their Mortgage Monitor report for April today. According to BKFS, 4.77% of mortgages were delinquent in April, up from 4.70% in March. BKFS reported that 1.51% of mortgages were in the foreclosure process, down from 2.02% in April 2014.

This gives a total of 6.28% delinquent or in foreclosure. It breaks down as:

• 1,463,000 properties that are 30 or more days, and less than 90 days past due, but not in foreclosure.
• 952,000 properties that are 90 or more days delinquent, but not in foreclosure.
• 764,000 loans in foreclosure process.

For a total of ​​3,179,000 loans delinquent or in foreclosure in April. This is down from 3,837,000 in April 2014.

BKFS Delinquencies Click on graph for larger image.

From Black Knight:

From Black Knight’s ‘First Look’ report, a high level view at the month’s mortgage performance data, we saw a slight seasonal uptick in delinquencies push the national rate back up to nearly 4.8 percent

As of April month-end, the nation’s foreclosure inventory fell by 18,000 to 764,000 total, a drop of over 250,000 from this time last year

April saw a slight uptick in delinquency rates – rising 1.5 percent month-over month

Seasonal increases in April are typical (they’ve been seen in eight of the past 10 years)
Also: Black Knight’s April Mortgage Monitor: 62 Percent of Seriously Delinquent Loans Have Undergone Home Retention Actions; Florida Sees Greatest Backlog Improvement
This month, Black Knight examined the most recent data on home retention actions – i.e., loan modifications and repayment plans – and found that of the approximately 952,000 borrowers who are 90 or more days past due but not yet in foreclosure, 62 percent have been through some form of home retention program. As Black Knight Data & Analytics Senior Vice President Ben Graboske explained, while overall retention actions have decreased over the past two years, they are making up a greater share of that seriously delinquent inventory.

“In analyzing the data around home retention initiatives, we found that nearly one in five seriously delinquent borrowers are currently taking part in an active trial modification or payment plan,” said Graboske. “With 62 percent of loans 90 or more days delinquent but not yet in foreclosure having been through some form of home retention action, we’re currently seeing the highest level of saturation yet, but that’s only marginally up from last year – in other words, that saturation level is beginning to flatten. Overall, home retention actions have declined 42 percent over the past two years, but at the same time have increased nine percent as a share of that seriously delinquent inventory. We’re also starting to see some redundancy in this activity – 70 percent of all new trial modifications and repayment plans have already been through one or more home retention actions previously.”
BKFS Home Retention
Home retention actions have declined 42 percent over the past two years, but at the same time, have increased 9 percent as share of 90+ days delinquent inventory

In Q1 2015, 15 percent of loans 90 or more days delinquent saw some form of home retention action each month (using a 3-month weighted average)
There is much more in the mortgage monitor.