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Monday, October 23, 2023

Black Knight: Mortgage Delinquency Rate Increased in September

by Calculated Risk on 10/23/2023 09:42:00 AM

From ICE / Black Knight: ICE First Look at Monthly Mortgage Performance: Delinquencies Rose in September While Foreclosure Activity Remained Muted

The national delinquency rate rose to 3.29% in September, up 12 basis points (BPS) from August and +13BPS year over year, marking only the second – and largest – annual increase in the past 2.5 years

• Despite the rise, the delinquency rate is still 71BPS below the level of pre-pandemic September 2019

• Loans 30 days past due rose by 48.8K (+5.1%) – marking the fourth consecutive monthly rise – while the 60-day delinquent population extended its own streak of increases (+8.7K; +3.0%) to six months

• At the national level, serious delinquencies (90+ days past due) rose by 7K to 455K, but remain 6.7% below September 2019 levels

• While overall delinquencies have risen, the number of loans in active foreclosure fell to 214K in September, its lowest point since March 2022 and some 25% below 2019 pre-pandemic levels

• Foreclosure starts also declined, falling by -20.4% in the month to 25.4K, with completed sales down 8% from the month prior

• Prepay activity (measured as single-month mortality) dropped to 0.45% under continued pressure from seasonal homebuying patterns confounded by interest rates north of 7%, and is down -26% year over year
emphasis added
According to Black Knight's First Look report, the percent of loans delinquent increased 3.7% in September compared to August and increased 4.3% year-over-year.

Black Knight reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) was 3.29% in August, up from 3.17% the previous month.

The percent of loans in the foreclosure process decreased in September to 0.40%, from 0.41% the previous month. 
The number of delinquent properties, but not in foreclosure, is up 96,000 properties year-over-year, and the number of properties in the foreclosure process is down 13,000 properties year-over-year.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
In Foreclosure0.40%0.41%
Number of properties:
Number of properties
that are delinquent,
but not in foreclosure:
Number of properties
in foreclosure
pre-sale inventory:
Total Properties1,963,0001,899,000