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Monday, July 25, 2022

Black Knight: Mortgage Delinquency Rate increased in June; Remains Well below Pre-Pandemic Levels

by Calculated Risk on 7/25/2022 11:19:00 AM

From Black Knight: Black Knight’s First Look: Mortgage Delinquencies and Foreclosure Starts Edge Higher in June but Remain Well Below Pre-Pandemic Levels

The national delinquency rate rose nine basis points from May to reach 2.84% after hitting consecutive record lows in each of the prior three months

• Increases were broad-based – the number of borrowers a single payment past due rose 5%, while 90-day delinquencies broke a 21-month streak of improvement with a modest 1% uptick from the prior month

• Foreclosure starts were also up 27% in June – still 40% below pre-pandemic levels – marking a 441% year-over-year increase, a significant rise from pandemic-driven lows

• Starts also represented the highest share (4%) of serious delinquencies since March 2020, but less than half the rate in the years leading up to the pandemic

Active foreclosure inventory rose by 16K in the month as volumes continue to slowly come off the record lows brought on by widespread moratoriums and forbearance protections in 2020/21

• Prepayment activity was down another 7% in June with prepays now down by 64% from the same time last year as rising rates put downward pressure on both purchase and refinance lending
emphasis added
According to Black Knight's First Look report, the percent of loans delinquent increased 3.3% in June compared to May and decreased 35% year-over-year.

Black Knight reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) was 2.84% in June, up from 2.75% in May.

The percent of loans in the foreclosure process increased in June to 0.53%, from 0.50% in May.  This is increasing from very low levels due to the foreclosure moratoriums.

The number of delinquent properties, but not in foreclosure, is down 809,000 properties year-over-year, and the number of properties in the foreclosure process is up 45,000 properties year-over-year.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
In Foreclosure0.53%0.50%0.27%0.36%
Number of properties:
Number of properties
that are delinquent,
but not in foreclosure:
Number of properties
in foreclosure
pre-sale inventory:
Total Properties1,700,0001,635,0002,466,0004,226,000