by Calculated Risk on 10/24/2018 08:31:00 AM

From Black Knight: Black Knight’s First Look: Seasonal, Calendar and Hurricane-Related Pressures Result in Largest Single-Month Mortgage Delinquency Increase in Nearly a Decade

• Mortgage delinquencies rose more than 13 percent in September, the largest single-month rise since November 2008

• 16 of the last 19 Septembers have seen delinquencies increase, averaging a 5.2 percent rise over that time frame, the largest of any month during the calendar year

• September 2018 also ended on a Sunday, which typically creates strong upward pressure on delinquencies

• Hurricane Florence-related delinquencies spiked 38 percent month-over-month, with more than 6,000 borrowers already missing a payment as a direct result of the storm

• Foreclosure starts posted a double-digit monthly decline, hitting a nearly 18-year low at just 40,000 for the month

• Both the inventory of loans in active foreclosure and the foreclosure rate have now fallen below their pre-recession averages for the first time since the financial crisis

According to Black Knight's First Look report for September, the percent of loans delinquent increased 13.2% in September compared to August, but decreased 9.8% year-over-year.

The percent of loans in the foreclosure process decreased 4.5% in September and were down 26.0% 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 3.97% in September, up from 3.52% in August.

The percent of loans in the foreclosure process decreased in September to 0.52% from 0.54% in August.

The number of delinquent properties, but not in foreclosure, is down 196,000 properties year-over-year, and the number of properties in the foreclosure process is down 90,000 properties year-over-year.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
	Sept 2018	Aug 2018	Sept 2017	Sept 2016
Delinquent	3.97%	3.52%	4.40%	4.27%
In Foreclosure	0.52%	0.54%	0.70%	1.00%
Number of properties:
Number of properties that are delinquent, but not in foreclosure:	2,049,000	1,818,000	2,245,000	2,165,000
Number of properties in foreclosure pre-sale inventory:	268,000	280,000	358,000	509,000
Total Properties	2,317,000	2,099,000	2,603,000	2,674,000