Monday, July 06, 2015

Black Knight May Mortgage Monitor

by Bill McBride on 7/06/2015 11:55:00 AM

Black Knight Financial Services (BKFS) released their Mortgage Monitor report for May today. According to BKFS, 4.96% of mortgages were delinquent in May, up from 4.77% in April. BKFS reported that 1.49% of mortgages were in the foreclosure process, down from 1.91% in May 2014.

This gives a total of 6.45% delinquent or in foreclosure. It breaks down as:

• 1,591,000 properties that are 30 or more days, and less than 90 days past due, but not in foreclosure.
• 922,000 properties that are 90 or more days delinquent, but not in foreclosure.
• 754,000 loans in foreclosure process.

For a total of ​​3,268,000 loans delinquent or in foreclosure in May. This is down from 3,805,000 in May 2014.

And here is a look at homeowners who could still refinance.

BKFS Delinquencies Click on graph for larger image.

From Black Knight:

Looking at current interest rates on existing 30-year mortgages and applying broad-based underwriting criteria, we see approximately 6.1 million potential refinance candidates – borrowers that likely could qualify for and benefit from refinancing

Given that HARP has been extended through 2016, we find there are an additional 450K borrowers that meet HARP eligibility guidelines and could benefit from refinancing through the program

There are 1.6 million more refinanceable borrowers today than one year ago, due in part to home price appreciation, but primarily due to interest rate reductions

This is down by 1 million borrowers from just last month, due to minor fluctuations in interest rates, illustrating just how rate sensitive a population this is

If rates were to rise by just half a percentage point, 42 percent of borrowers (2.6 million people) fall out of that refinanceable population
There is much more in the mortgage monitor.