Thursday, September 24, 2020

Black Knight: National Mortgage Delinquency Rate Decreased in August, Serious Delinquencies Rise

by Calculated Risk on 9/24/2020 04:33:00 PM

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: Early-Stage Delinquencies Improve Further, While Seriously Past-Due Loans Rise; Rate of Improvement Slows

• The divergence between early-stage delinquencies and seriously past-due mortgages continues to widen as fewer delinquent loans cured to current status in August

• Overall, the national delinquency rate fell just 0.03 basis points from July after declining a combined 0.85 basis points over the prior two months, a noticeable slowing in the rate of improvement

• The share of borrowers with a single missed payment had already fallen below pre-pandemic levels; in August, the sum of all early-stage delinquencies (those 30 and 60 days past due) fell 9%, dropping below that benchmark as well

• However, the improvement in early-stage delinquencies was offset by a 5% increase in serious delinquencies – those 90 or more days past due – which have now risen in each of the past five months

• August’s rise in serious delinquencies was the mildest of those five months, suggesting that they may be nearing their peak

• While there are nearly 2 million more seriously delinquent homeowners than at pre-pandemic levels, foreclosure activity remains muted due to active forbearance plans and foreclosure moratoriums
emphasis added
According to Black Knight's First Look report, the percent of loans delinquent decreased 0.5% in August compared to July, and increased 99% year-over-year.

The percent of loans in the foreclosure process decreased 1.4% in August and were down 27% 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 6.88% in August, down from 6.81% in July.

The percent of loans in the foreclosure process decreased slightly in August to 0.35% from 0.36% in July.

The number of delinquent properties, but not in foreclosure, is up 1,866,000 properties year-over-year, and the number of properties in the foreclosure process is down 66,000 properties year-over-year.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
  August
2020
July
2020
August
2019
August
2018
Delinquent6.88%6.91%3.45%3.52%
In Foreclosure0.35%0.36%0.48%0.54%
Number of properties:
Number of properties that are delinquent, but not in foreclosure:3,679,0003,692,0001,813,0001,818,000
Number of properties in foreclosure pre-sale inventory:187,000190,000253,000280,000
Total Properties3,867,0003,881,0002,066,0002,099,000