Black Knight: Delinquency Rates Rise 2nd Straight Month

Black Knight, Jacksonville, Fla., said residual impact of summer hurricanes triggered a second consecutive monthly increase in mortgage delinquencies.

The company’s First Look Mortgage Monitor for October said the national mortgage delinquency rate rose to 4.44 percent, up by 0.94 percent from September and up by 2.05 percent from a year ago. Black Knight attributed most of the increase to past due mortgages in Texas and Florida–states hit hardest by summer hurricanes Harvey and Irma–while noting that delinquencies fell in non-affected areas.

“Though delinquencies were down in all states except Texas and Florida, in FEMA-declared Hurricanes Harvey and Irma disaster areas, they rose another 24 percent (186BPS) in October,” Black Knight said. “The most notable increase was in Florida, where delinquencies spiked 36 percent from September in hurricane-affected areas.”

Black Knight reported 229,000 past-due mortgages attributed to Hurricanes Irma (163,000) and Harvey (66,000).

The report said prepayment activity rebounded in October, up 17 percent month-over-month, but still 25 percent below last year’s level. The inventory of loans in active foreclosure continues to improve, falling below 350,000 for the first time since 2006.

On Friday, the Mortgage Bankers Association’s Third Quarter National Delinquency Survey reported the delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 4.88 percent of all loans outstanding , up 64 basis points from the previous quarter and 36 basis points higher than one year ago. The survey reported the percentage of loans on which foreclosure actions were started during the third quarter fell slightly to 0.25 percent, a decrease of one basis point from the previous quarter and five basis points lower than one year ago.

MBA said the percentage of loans in the foreclosure process at the end of the third quarter fell to 1.23 percent, down 6 basis points from the previous quarter and 32 basis points lower than one year ago. The serious delinquency rate–the percentage of loans 90 days or more past due or in the process of foreclosure–rose to 2.52 percent in the third quarter, up three basis points from the previous quarter but 44 basis points lower than one year ago.

Other Black Knight report highlights:

–Total U.S. foreclosure pre-sale inventory rate: 0. 68 percent, down by 2.84 percent from September and by 31.42 percent from a year ago.

–Total U.S. foreclosure starts: 50,200, up by 11.06 percent from September but down by 11.15 percent from a year ago.

–Monthly Prepayment Rate: 1.12 percent, up by nearly 17 percent from September but down by more than 25 percent from a year ago.

–Properties 30 or more days past due, but not in foreclosure: 2.262 million, up by 17,000 from September and up by 60,000 from a year ago.

–Properties 90 or more days past due, but not in foreclosure: 589,000, up by 13,000 from September but down by 88,000 from a year ago.

–Properties in foreclosure pre-sale inventory: 348,000, down by 10,000 from September and down by 156,000 from a year ago.

–Properties 30 or more days past due or in foreclosure: 2.610 million, up by 7,000 from September but down by 96,000 from a year ago.

–States with Highest Non-Current Loans: Mississippi, Florida, Louisiana, Alabama, Texas.

–States with Lowest Non-Current Loans: Colorado, North Dakota, Oregon, Minnesota, Montana.

–States with Highest 90+ Days Delinquencies: Mississippi, Louisiana, Alabama, Arkansas, Florida.