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Monday, November 23, 2020

Black Knight: National Mortgage Delinquency Rate Decreased in October

by Calculated Risk on 11/23/2020 09:47:00 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: Mortgage Delinquencies Decline for Fifth Consecutive Month in October; Record-Low Rates Push Prepayment Activity to 16-Year High

Mortgage delinquencies improved again in October, falling to 6.44%, the lowest level since March

• Despite five consecutive months of improvement, there are still more than 3.4 million delinquent mortgages, nearly twice as many as there were entering the year

• Serious delinquencies – loans 90 or more days past due – improved in October as well, but volumes remain at more than five times (+1.8 million) pre-pandemic levels

• October’s 4,700 foreclosure starts marked a nearly 90% year-over-year reduction as widespread moratoriums remain in place, while active foreclosure inventory set yet another record low at 178,000

• Record-low interest rates again pushed prepayment activity higher, with October’s prepayment rate of 3.17% setting the highest single-month mark in more than 16 years
emphasis added
According to Black Knight's First Look report, the percent of loans delinquent decreased 3.3% in October compared to September, and increased 90% year-over-year.

The percent of loans in the foreclosure process decreased 1.6% in October and were down 31% 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 6.44% in October, down from 6.66% in September.

The percent of loans in the foreclosure process decreased in October to 0.33%, from 0.34% in September.

The number of delinquent properties, but not in foreclosure, is up 1,651,000 properties year-over-year, and the number of properties in the foreclosure process is down 77,000 properties year-over-year.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
  Oct
2020
Sept
2020
Oct
2019
Oct
2018
Delinquent6.44%6.66%3.39%3.64%
In Foreclosure0.33%0.34%0.48%0.52%
Number of properties:
Number of properties
that are delinquent,
but not in foreclosure:
3,437,0003,542,0001,786,0001,884,000
Number of properties
in foreclosure
pre-sale inventory:
178,000181,000255,000267,000
Total Properties3,616,0003,722,0002,041,0002,152,000