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Wednesday, May 24, 2023

Black Knight: "Mortgage Delinquencies Rise on Calendar Effect" in April

by Calculated Risk on 5/24/2023 04:05:00 PM

From Black Knight: Black Knight’s First Look: Early-Stage Mortgage Delinquencies Rise on Calendar Effect; Prepayments Slow as Spring Homebuying Season Falters on High Rates, Low Inventory

The national delinquency rate spiked 13% higher in April from March’s record low, with the month ending on a Sunday impacting the processing of payments made on the last calendar day of the month

• Early-stage delinquencies (borrowers 30 days late) bore the brunt of the rise, increasing by 200K (+25%) which matches the impact of previous similar calendar-related events

Serious delinquencies (90+ days past due) continued to improve nationally, with the number of such loans shrinking in 45 states (90%) plus the District of Columbia in April

• Foreclosure starts fell 23% to 25K for the month – the lowest since September 2022 –and 45% below April 2019’s pre-pandemic level

• Foreclosure actions were started on 4.9% of serious delinquencies in April, down slightly from March and still more than four percentage points below the monthly average prior to the pandemic

• Active foreclosure inventory declined by 6K in the month, and is down 60K or 21% from March 2020

• March saw 6,400 foreclosure sales (completions) nationally, down 14% from the month prior

• Prepayment activity (SMM) fell to 0.44% – giving back some of the previous month’s gain and suggesting the spring homebuying season is faltering on high rates and low inventory – remaining 59% off last April’s levels
emphasis added
According to Black Knight's First Look report, the percent of loans delinquent increased 13% in April compared to March and increased 2% year-over-year.

Black Knight reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) was 3.31% in April, up from 2.92% the previous month.

The percent of loans in the foreclosure process decrease in April to 0.44%, from 0.46% the previous month. 
The number of delinquent properties, but not in foreclosure, is up 61,000 properties year-over-year, and the number of properties in the foreclosure process is up 14,000 properties year-over-year.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
In Foreclosure0.44%0.46%
Number of properties:
Number of properties
that are delinquent,
but not in foreclosure:
Number of properties
in foreclosure
pre-sale inventory:
Total Properties1,980,0001,779,000