by Calculated Risk on 11/27/2018 11:18:00 AM

From Black Knight: Black Knight’s First Look: Mortgage Delinquencies Rebound Strongly in October; Number of Seriously Past-Due Loans Falls Below 500,000 for First Time Since 2006

• After rising sharply in September, mortgage delinquencies fell by 8.2 percent in October and are now down by nearly 18 percent from the same time last year

• Serious delinquencies – loans 90 or more days past due – fell by 14,000 from last month and 90,000 from last October to hit a more than 12-year low

• Improvements in hurricane-related delinquencies associated with Harvey and Irma – which spiked in late 2017 – are contributing to the strong year-over-year improvements

• Despite foreclosure starts seeing a monthly increase from September’s nearly 18-year low, the number of loans in active foreclosure fell slightly from September and has decreased by 24 percent from last year

• Prepayment activity – now driven primarily by housing turnover – climbed 14 percent, but remains 29 percent below last year’s level

According to Black Knight's First Look report for October, the percent of loans delinquent decreased 8.2% in October compared to September, and decreased 17.9% year-over-year.

The percent of loans in the foreclosure process decreased 0.5% in October and were down 24.2% 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 3.64% in October, down from 3.97% in September.

The percent of loans in the foreclosure process decreased slightly in October to 0.52% from 0.52% in September.

The number of delinquent properties, but not in foreclosure, is down 378,000 properties year-over-year, and the number of properties in the foreclosure process is down 81,000 properties year-over-year.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
	Oct 2018	Sept 2018	Oct 2017	Oct 2016
Delinquent	3.64%	3.97%	4.44%	4.35%
In Foreclosure	0.52%	0.52%	0.68%	0.99%
Number of properties:
Number of properties that are delinquent, but not in foreclosure:	1,884,000	2,049,000	2,262,000	2,202,000
Number of properties in foreclosure pre-sale inventory:	267,000	268,000	348,000	504,000
Total Properties	2,152,000	2,317,000	2,610,000	2,706,000