Thursday, June 22, 2017

Black Knight: Mortgage Delinquencies Decreased in May, Foreclosures at 10-Year Lows

by Bill McBride on 6/22/2017 09:30:00 AM

From Black Knight: Prepayments (historically a good indicator of refinance activity) jumped 23 percent month-over-month, reaching their highest point so far in 2017

• Prepayments (historically a good indicator of refinance activity) jumped 23 percent month-over-month, reaching their highest point so far in 2017

• Delinquencies reversed course after calendar driven increase in April, falling 7.13 percent month-over-month

• April’s delinquency rate increase was primarily calendar-driven (due to both the month ending on a Sunday and March being the typical calendar-year low) and largely isolated to early-stage delinquencies

• Inventory of loans either seriously delinquent (90 or more days past due) or in active foreclosure continues to improve, with both hitting 10-year lows in May
According to Black Knight's First Look report for May, the percent of loans delinquent decreased 7.1% in May compared to April, and declined 10.8% year-over-year.

The percent of loans in the foreclosure process declined 3.0% in May and were down 26.9% 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 3.79% in May, down from 4.08% in April.

The percent of loans in the foreclosure process declined in May to 0.83%.

The number of delinquent properties, but not in foreclosure, is down 226,000 properties year-over-year, and the number of properties in the foreclosure process is down 153,000 properties year-over-year.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
  May
2017
Apr
2017
May
2016
May
2015
Delinquent3.79%4.08%4.25%4.91%
In Foreclosure0.83%0.85%1.13%1.59%
Number of properties:
Number of properties that are delinquent, but not in foreclosure:1,927,0002,072,0002,153,0002,478,000
Number of properties in foreclosure pre-sale inventory:421,000433,000574,000803,000
Total Properties2,348,0002,505,0002,727,0003,280,000