Black Knight: 1.55 Million Serious Delinquencies Nag Market
Black Knight, Jacksonville, Fla., said the national delinquency rate hit its lowest level since the onset of the pandemic in June and is now back below its pre-Great Recession average. Despite the improvement, more than 1.5 million homeowners remain 90 or more days past due on their mortgages but who are not in foreclosure, still nearly four times pre-pandemic levels.
The company’s monthly First Look Mortgage Monitor report said serious delinquency rates remain elevated by more than a full percentage point across all 50 states, with Hawaii and Nevada serious delinquency rates remaining elevated by 3.4 percentage points. However, though serious delinquencies remain significantly elevated, the share of mortgages in active foreclosure fell to yet another record low in June at 0.27%.
The report also noted recent pullbacks in interest rates resulted in prepayment activity edging upward for the first time in three months.
Other report findings:
–Loan delinquency rate (30 or more days past due, but not in foreclosure): 4.37% in June, down by 7.62% from May and down by 42.4% from a year ago.
–Foreclosure pre-sale inventory rate: 0.27%, down by 1.73% from May and by 24.2% from a year ago.
–Foreclosure starts: 4,400, up by 15.79% from May but down by 25.4% from a year ago.
–Monthly prepayment rate: 2.28%, up by 6.2% from May but down by 14.1% from a year ago.
–Properties 30 or more days past due, but not in foreclosure: 2.32 million, down by 191,000 from May and by 1.71 million from a year ago.
–Properties 90 or more days past due, but not in foreclosure: 1.55 million, down by 119,000 from May and by 324,000from a year ago.
–Properties in foreclosure pre-sale inventory: 145,000, down by 3,000 from May and by 47,000 from a year ago.
–Properties 30 or more days past due or in foreclosure: 2.466 million, down by 193,000 from May and by 1.766 million from a year ago.
–States with the highest percentage of non-current loans: Mississippi, Louisiana, Hawaii, Oklahoma, West Virginia.
–States with the lowest percentage of non-current loans: Idaho, Colorado, Washington, Utah, Montana.
–States with the highest percentage of 90-day-plus non-current loans: Mississippi, Louisiana, Hawaii, Nevada, Maryland.