Black Knight: November Prepayment Activity Hits 10-Year Low as Refinances Fall

Black Knight, Jacksonville, Fla., reported mortgage prepayment activity fell by 14 percent month-over-month and by 29 percent year-over-year to its lowest level since November 2008.

The company’s monthly First Look Mortgage Monitor report noted historically, prepayments were driven primarily by refinance activity but, more recently, the primary driver has become housing sales. The last time the prepayment rate was this low, during the financial crisis, interest rates were above 6 percent and purchase lending had fallen by more than 50 percent in a 24-month span.

The report said mortgage delinquencies saw a slight seasonal increase in November, but remain 19 percent below last year’s level. Serious delinquencies (90 or more days past due) also increased slightly for the month; now stand at 510,000. Foreclosure starts fell by 11 percent month-over-month, with an estimated 45,200 starts in November

Black Knight reported a slight uptick in foreclosure inventory was offset by a month-over-month increase in the number of outstanding mortgages, resulting in a net decline in the national foreclosure rate.

Other key data:

–Loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 3.71 percent, an increase of 1.78 percent from October but down by 18.53 percent from a year ago.

–Foreclosure Pre-Sale Inventory Rate: 0.52 percent, down by 0.22 percent from October and down by nearly 22 percent from a year ago.

–Foreclosure Starts: 45,200, down by 10.7 percent from October and down by 5.44 percent from a year ago.

–Monthly Prepayment Rate: 0.66 percent, down by nearly 15 percent from October and down by 33 percent from a year ago.

–Properties 30 or days past due, but not in foreclosure: 1.925 million, up by 41,000 from October but down by 389,000 from a year ago.

–Properties 90 or more days past due, but not in foreclosure: 510,000, up by 11,000 from October but down by 156,000 from a year ago.

–Properties in pre-foreclosure inventory: 266,000, up by 11,000 from October but down by 69,000 from a year ago.

–Properties 30 or more days past due or in foreclosure: 2.193 million, up by 41,000 from October but down from 468,000 a year ago.

–States with the highest percentage of non-current loans: Mississippi (10.2 percent), Louisiana (7.91 percent), Alabama (6.82 percent), Arkansas (6.57 percent) and West Virginia (6.46 percent).

–States with the lowest percentage of non-current loans: Colorado (1.91 percent),
Oregon (2.26 percent), Washington (2.28 percent), California (2.35 percent), Idaho (2.55 percent).

–States with highest percentage of 90-day plus delinquencies: Mississippi, Louisiana, Alabama, Arkansas, Tennessee.