Black Knight ‘First Look:’ Foreclosure Starts Lowest Level on Record; February Delinquencies Up Slightly

Black Knight, Jacksonville, Fla., said February foreclosure starts fell 25% from January and 20% from a year ago, reaching their lowest level on record since it began publicly reporting the metric in 2000.

The company’s First Look Mortgage Monitor reported the national foreclosure rate also ticked lower in February, falling to 0.45%; the lowest level since 2005, and within one basis point of a record low. Delinquencies edged up slightly from January, but remain more than 15% below last year’s levels.

The report said prepayment activity rose by nearly 8% month-over-month as early 2020 rate declines have begun to impact refinance activity.

Other key February report findings:

–Total loan delinquency rate (loans 30 or more days past due, but not in foreclosure: 3.28 percent, up by 1.95 percent from January but down by 15.6 percent from a year ago.

–Foreclosure pre-sale inventory rate: 0.45 percent, down by 2.54 percent from January and down by 11.23 percent from a year ago.

–Foreclosure starts: 32,300, down by nearly 25 percent from January and down by 20.05 percent from a year ago.

–Monthly pre-payment rate: 1.35 percent, up by 7.78 percent from January and up by 106.59 percent from a year ago.

–Properties 30 or more days past due, but not in foreclosure: 1.737 million, up by 32,000 from January but down by 282,000 from a year ago.

–Properties 90 or more days past due, but not in foreclosure: 409,000, down by 10,000 from January and by 93,000 from a year ago.

–Properties in foreclosure pre-sale inventory: 239,000, down by 7,000 from January and by 25,000 from a year ago.

–Properties 30 or more days past due or in foreclosure: 1.976 million, up by 25,000 from January but down by 308,000 from a year ago.

–States with the highest percentage of non-current loans: Mississippi, Louisiana, Alabama, West Virginia, Arkansas.

–States with the lowest percentage of non-current loans: Washington, Colorado, Idaho, Oregon, California.

–States with the highest percentage of 90 day-plus delinquencies or foreclosure: Mississippi, Louisiana, Alabama, Arkansas, West Virginia.