Thursday, October 22, 2020

Black Knight: National Mortgage Delinquency Rate Decreased in September

by Calculated Risk on 10/22/2020 01:03:00 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: Serious Delinquencies Improved in September for the First Time Since the Start of the Pandemic

• The number of seriously delinquent mortgages (90+ days) fell by 43,000 in September, marking the first such improvement in serious delinquencies since the start of the pandemic

• More than 2.3 million homeowners – five times the number entering 2020 – remain 90 or more days past due, but not in foreclosure

The national delinquency rate fell in September to 6.66%, down from 6.88% the month prior

• Early-stage delinquencies continue to show strong improvement, with rolls from current to 30-days delinquent, as well as the number of borrowers less than 90 days delinquent, having returned to pre-pandemic levels

• Both foreclosure starts and foreclosure sales continue to remain muted given the widespread foreclosure moratoriums still in place
emphasis added
According to Black Knight's First Look report, the percent of loans delinquent decreased 3.1% in September compared to August, and increased 89% year-over-year.

The percent of loans in the foreclosure process decreased 2.9% in September and were down 29% 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 6.66% in September, down from 6.88% in August.

The percent of loans in the foreclosure process decreased in September to 0.34%, from 0.35% in August.

The number of delinquent properties, but not in foreclosure, is up 1,688,000 properties year-over-year, and the number of properties in the foreclosure process is down 71,000 properties year-over-year.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
  Sept
2020
Aug
2020
Sept
2019
Sept
2018
Delinquent6.66%6.88%3.53%3.97%
In Foreclosure0.34%0.35%0.48%0.52%
Number of properties:
Number of properties that are delinquent, but not in foreclosure:3,542,0003,679,0001,854,0002,049,000
Number of properties in foreclosure pre-sale inventory:181,000187,000252,000268,000
Total Properties3,722,0003,867,0002,106,0002,317,000