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Friday, December 24, 2021

Black Knight: National Mortgage Delinquency Rate Decreased in November; Foreclosures at Record Low

by Calculated Risk on 12/24/2021 08:11:00 AM

Note: At the beginning of the pandemic, the delinquency rate increased sharply (see table below).   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 Continue Steady Improvement; Active Foreclosures Fall to Yet Another Record Low Entering Final Month of 2021

• The national delinquency rate saw yet another month of steady improvement, with November’s 4.1% monthly decline matching the 18-month average rate of reduction

• Despite serious delinquencies (loans 90+ days past due but not in foreclosure) falling another 80,000 from October, over 1 million such delinquencies remain, 2.5 times more than at the start of the pandemic

Both foreclosure starts (3,700) and active foreclosure inventory (132,000) hit new record lows in November as borrowers continue to work through available forbearance and loss mitigation options

• More than 800,000 forbearance exits have occurred over the past 60 days, with nearly 560,000 homeowners remaining in post-forbearance loss mitigation

• Given the size of this population, both serious delinquency and foreclosure metrics demand close attention as we enter 2022

• Prepayment activity (SMM) fell by 8.9% in November to hit its lowest level in 22 months, as rising 30-year rates continue to put downward pressure on refinance volumes
emphasis added
According to Black Knight's First Look report, the percent of loans delinquent decreased 4.1% in November compared to October and decreased 43% year-over-year.

The percent of loans in the foreclosure process decreased 4.3% in November and were down 24% 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 3.59% in November, down from 3.74% in October.

The percent of loans in the foreclosure process decreased in November to 0.25%, from 0.26% in October.

The number of delinquent properties, but not in foreclosure, is down 1,475,000 properties year-over-year, and the number of properties in the foreclosure process is down 44,000 properties year-over-year.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
In Foreclosure0.25%0.26%0.33%0.47%
Number of properties:
Number of properties
that are delinquent,
but not in foreclosure:
Number of properties
in foreclosure
pre-sale inventory:
Total Properties2,039,0002,125,0003,557,0002,116,000