Black Knight First Look: 2020 Ends with Higher Delinquencies, Lower Foreclosures
Black Knight, Jacksonville, Fla., said 2020 ended with 1.54 million more delinquent and 1.7 million more seriously delinquent mortgages than at the start of the year, a looming reminder of the challenges facing the market in 2021.
The company’s First Look Mortgage Monitor noted, however, despite the year-over-year increase, the national delinquency rate saw modest improvement in December, falling by 3.9% from November to 6.08%, the lowest level since April. Serious delinquencies (loans 90 or more days past due) also improved, falling to 2.15 million from 2.19 million the month prior. Foreclosure starts fell by 67% from the year prior and the year’s 40,000 foreclosure sales (completions) represented an annual decline of more than 70%.
The report noted starts and sales have hit record lows as moratoriums and forbearance plans protect distressed homeowners from facing foreclosure in the wake of the pandemic.
Additionally, the report said prepayment activity rose by 12% percent in December, ending the year 112% higher than the same month in 2019 and highlighting a still-strong refinance market entering 2021.
Other report findings:
–Foreclosure starts totaled 7,100 in December, up by 61.4% from November but down by 82% from a year ago.
–Properties 30 or more days due, but not in foreclosure: 3.251 million, down by 130,000 from November but up by 1.45 million from a year ago.
–Properties 90 or more days due, but not in foreclosure: 2.146 million, down by 47,000 from November but up by 1.719 million from a year ago.
–Properties in foreclosure pre-sale inventory: 178,000, up by 2,000 from November but down by 67,000 from a year ago.
–Properties 30 or more days past due or in foreclosure: 3.429 million, down by 128,000 from November but up by 1.382 million from a year ago.
–States with the highest percentage of non-current loans: Mississippi, Louisiana, Hawaii, West Virginia, New York.
—States with the lowest percentage of non-current loans: Idaho, Washington, Colorado, Utah, Oregon.
–States with the highest percentage of 90+ days delinquencies: Mississippi, Louisiana, Hawaii, Nevada, Alaska.
