Friday, August 21, 2020

Black Knight: National Mortgage Delinquency Rate Decreased in July, "Serious Delinquencies Climb"

by Calculated Risk on 8/21/2020 11:53:00 AM

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

From Black Knight: Total Number of Past Due Mortgages Improves in July While Serious Delinquencies Climb; Monthly Prepayment Activity Hits 16-Year High

• Mortgage delinquencies continued to improve in July, falling 9% from June, with more than 340,000 fewer past due mortgages than in the month prior

• Early-stage delinquencies – loans with a single missed payment – have fallen below pre-pandemic levels, suggesting that the initial inflow of new COVID-19-related delinquencies has subsided

• However, serious delinquencies – those 90 or more days past due – rose by 376,000 and are now up more than 1.8 million from their pre-pandemic levels

• Foreclosure activity continues to remain muted due to widespread moratoriums; though starts rose for the month, overall activity remains near record lows

• Prepayment activity edged slightly higher in July, hitting its highest monthly mark since early 2004, as low rates continue to drive both refinance and purchase activity
emphasis added
According to Black Knight's First Look report, the percent of loans delinquent decreased 8.9% in July compared to June, and increased 100% year-over-year.

The percent of loans in the foreclosure process decreased 1.8% in July and were down 28% 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 6.91% in July, down from 7.59% in June.

The percent of loans in the foreclosure process decreased slightly in July to 0.36% from 0.36% in June.

The number of delinquent properties, but not in foreclosure, is up 1,885,000 properties year-over-year, and the number of properties in the foreclosure process is down 68,000 properties year-over-year.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
  July
2020
June
2020
July
2019
July
2018
Delinquent6.91%7.59%3.46%3.61%
In Foreclosure0.36%0.36%0.49%0.57%
Number of properties:
Number of properties that are delinquent, but not in foreclosure:3,692,0004,034,0001,807,0001,861,000
Number of properties in foreclosure pre-sale inventory:190,000192,000258,000293,000
Total Properties3,881,0004,226,0002,065,0002,154,000