by Calculated Risk on 10/24/2019 02:31:00 PM

From Black Knight: Black Knight’s First Look: Despite Slight Seasonal Uptick, Mortgage Delinquencies Fall 11% From Last Year; Prepays More Than Double as Refi Wave Continues

• The national delinquency rate edged up seasonally in September to 3.53%, but fell 11.2% from one year prior for the largest year-over-year decline in eight months

• Both serious delinquencies and active foreclosure inventory fell in the month as well, with the latter falling to its lowest level since late 2005

• Western states – Colorado, Oregon, Washington, Idaho, and California – continue to hold the nation’s lowest non-current rates (all delinquencies plus active foreclosures)

• Prepayment activity (SMM) rose by 3% from August despite facing headwinds from the typical seasonal decline in home sale-related prepayments

• Prepays are now up 121% from the same time last year as falling rates continue to spur refinance activity

According to Black Knight's First Look report for September, the percent of loans delinquent increased in September compared to August, and decreased 11.2% year-over-year.

The percent of loans in the foreclosure process decreased 0.4% in September and were down 7.7% 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 3.53% in September up from 3.45% in August.

The percent of loans in the foreclosure process decreased in September to 0.48% from 0.48% in August.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
	Sep 2019	Aug 2019	Sep 2018	Sep 2017
Delinquent	3.53%	3.45%	3.97%	4.40%
In Foreclosure	0.48%	0.48%	0.52%	0.70%
Number of properties:
Number of properties that are delinquent, but not in foreclosure:	1,854,000	1,813,000	2,049,000	2,245,000
Number of properties in foreclosure pre-sale inventory:	252,000	253,000	268,000	358,000
Total Properties Delinquent or in foreclosure	2,106,000	2,066,000	2,317,000	2,603,000