Monday, December 21, 2020

Black Knight: National Mortgage Delinquency Rate Decreased in November

by Calculated Risk on 12/21/2020 10:40:00 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: Black Knight: Delinquencies Improved Again in November 2020, But Nearly 2.2 Million Seriously Past-Due Mortgages Remain

• Despite seasonal headwinds, mortgage delinquencies improved for the sixth consecutive month in November 2020, falling to 6.33% from 6.44% in the month prior

• The national delinquency rate is now down 1.5 percentage points from its peak of 7.8% in May but remains a full three percentage points (+93%) above pre-pandemic levels

• While early-stage delinquencies – borrowers one or two payments past due – have fallen back below pre-pandemic levels, seriously past-due (90+ days) mortgages remain 1.8 million above pre-pandemic levels

• Foreclosure activity remains muted as widespread moratoriums remain in place

November’s 4,400 foreclosure starts and 176,000 loans in active foreclosure are both at their lowest levels on record since Black Knight began reporting the metrics in 2000

• Prepayments fell 11% from October’s 16-year high; however, with interest rates at record lows and refinance incentive at an all-time high, prepay activity is likely to remain elevated in the coming months
emphasis added
According to Black Knight's First Look report, the percent of loans delinquent decreased 1.8% in November compared to October, and increased 79% year-over-year.

The percent of loans in the foreclosure process decreased 1.6% in November and were down 30% 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 6.33% in November, down from 6.44% in October.

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

The number of delinquent properties, but not in foreclosure, is up 1,513,000 properties year-over-year, and the number of properties in the foreclosure process is down 72,000 properties year-over-year.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
  Nov
2020
Oct
2020
Nov
2019
Nov
2018
Delinquent6.33%6.44%3.53%3.71%
In Foreclosure0.33%0.33%0.47%0.52%
Number of properties:
Number of properties
that are delinquent,
but not in foreclosure:
3,381,0003,437,0001,868,0001,925,000
Number of properties
in foreclosure
pre-sale inventory:
176,000178,000248,000268,000
Total Properties3,557,0003,616,0002,116,0002,193,000