In Depth Analysis: CalculatedRisk Newsletter on Real Estate (Ad Free) Read it here.

Thursday, May 21, 2020

Black Knight: National Mortgage Delinquency Rate Increased Sharply in April, "Largest Single-Month Increase Ever Recorded"

by Calculated Risk on 5/21/2020 07:00:00 AM

Note: Loans in forbearance are counted as delinquent in this survey, so the delinquency rate jumped in April.

From Black Knight: Black Knight’s First Look: Past-Due Mortgages Increase by 1.6 Million in April, Largest Single-Month Increase Ever Recorded; Delinquency Rate Nearly Doubles

• 3.6 million homeowners were past due on their mortgages as of the end of April, the largest number since January 2015

• The number includes both homeowners past due on mortgage payments who are not in forbearance, as well as those in forbearance plans who did not make an April mortgage payment

At 6.45%, the national delinquency rate nearly doubled (+3.06%) from March, the largest single-month increase ever recorded, and nearly three times the previous single-month record set back in late 2008

• There were declines in cure activity among later-stage delinquencies as well, with the number of seriously delinquent mortgages (90+ days) increasing by 56,000 (+14%) from March

• Both foreclosure starts and foreclosure sales hit record lows in April as moratoriums halted foreclosure activity across the country
emphasis added
According to Black Knight's First Look report for March, the percent of loans delinquent increased 90.2% in April compared to March, and increased 85.8% year-over-year.

The percent of loans in the foreclosure process decreased 3.8% in April and were down 19.3% 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 6.45% in April, up from 3.39% in March.

The percent of loans in the foreclosure process decreased in April to 0.40% from 0.42% in March.

The number of delinquent properties, but not in foreclosure, is up 1,558,000 properties year-over-year, and the number of properties in the foreclosure process is down 48,000 properties year-over-year.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
In Foreclosure0.40%0.42%0.50%0.61%
Number of properties:
Number of properties that are delinquent, but not in foreclosure:3,400,0001,792,0001,812,0001,885,000
Number of properties in foreclosure pre-sale inventory:211,000220,000259,000314,000
Total Properties3,611,0002,013,0002,072,0002,199,000