Wednesday, July 22, 2020

Black Knight: National Mortgage Delinquency Rate Decreased in June, "Serious Delinquencies Surge to 9-Year High"

by Calculated Risk on 7/22/2020 09:47:00 AM

Note: Loans in forbearance are counted as delinquent in this survey, but these loans are not reported as delinquent to the credit bureaus.

From Black Knight: Mortgage Delinquencies Improve for the First Time Since January, While Serious Delinquencies Surge to 9-Year High

• After rising from 3.2% in January to 7.8% in May, the national delinquency rate improved for the first time in five months, falling to 7.6% in June as the overall number of past-due mortgages declined by 98,000

• Serious delinquencies – those 90 or more days past due – rose by more than 1.2 million as the initial wave of borrowers financially impacted by COVID-19 missed their third mortgage payment

• At 1.87 million, the number of seriously delinquent mortgages is now at its highest level since early 2011

• With federal foreclosure moratoriums still in place, active foreclosure inventory continues to dwindle; June’s 192,000 active foreclosures were the fewest on record, dating back to 2000

• Prepayment activity hit its highest level in 16 years in June, fueled by record-low 30-year interest rates and surging refinance incentive
emphasis added
According to Black Knight's First Look report for March, the percent of loans delinquent decreased 2.3% in June compared to May, and increased 104% year-over-year.

The percent of loans in the foreclosure process decreased 4.2% in June and were down 27.1% 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 7.59% in June, down from 7.76% in May.

The percent of loans in the foreclosure process decreased in June to 0.36% from 0.38% in May.

The number of delinquent properties, but not in foreclosure, is up 2,084,000 properties year-over-year, and the number of properties in the foreclosure process is down 67,000 properties year-over-year.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
  June
2020
May
2020
June
2019
June
2018
Delinquent7.59%7.76%3.73%3.74%
In Foreclosure0.36%0.38%0.50%0.56%
Number of properties:
Number of properties that are delinquent, but not in foreclosure:4,034,0004,123,0001,950,0001,925,000
Number of properties in foreclosure pre-sale inventory:192,000200,000259,000291,000
Total Properties4,226,0004.324,0002,209,0002,216,000