Thursday, December 22, 2016

Black Knight: Annual improvement in mortgage delinquency rates is beginning to slow as market "normalizes"

by Bill McBride on 12/22/2016 02:11:00 PM

From Black Knight: Black Knight Financial Services’ First Look at November Mortgage Data: Foreclosure Starts Up from October, But Still Near 10-Year Lows

• Delinquency rate up by 2.5 percent, a relatively mild seasonal increase by historical standards

  • Annual improvement in mortgage delinquency rates is beginning to slow as market "normalizes"

  • Number of loans in active foreclosure drops below 500K for the first time in nearly 10 years

  • Pre-payment activity remains strong, for now, as applications made prior to the rise in interest rates continue to close
According to Black Knight's First Look report for November, the percent of loans delinquent increased 2.5% in November compared to October, and declined 9.4% year-over-year.

The percent of loans in the foreclosure process declined 1% in November and were down 29% over the last year.

Black Knight reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) was 4.46% in November, up from 4.35% in October.

The percent of loans in the foreclosure process declined in November to 0.98%.

The number of delinquent properties, but not in foreclosure, is down 228,000 properties year-over-year, and the number of properties in the foreclosure process is down 200,000 properties year-over-year.

Black Knight will release the complete mortgage monitor for November on January 9th.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
  Nov
2016
Oct
2016
Nov
2015
Nov
2014
Delinquent4.46%4.35%4.92%6.03%
In Foreclosure0.98%0.99%1.38%1.75%
Number of properties:
Number of properties that are delinquent, but not in foreclosure:2,263,0002,202,0002,491,0003,037,000
Number of properties in foreclosure pre-sale inventory:498,000504,000698,000883,000
Total Properties2,761,0002,706,0003,189,0003,921,000