Black Knight: ‘Strong Summer’ Improvement in Delinquencies, But Bracing for Florence Fallout

Black Knight, Jacksonville, Fla., said mortgage delinquencies fell again in August, capping a strong summer that saw the strongest declines since 2000.

But the company’s First Look Mortgage Monitor warned even as the industry has largely recovered from 2017’s devastating hurricanes, fallout from Hurricane Florence could once again put delinquencies and foreclosures back in flux.

The report said the total U.S loan delinquency rate fell to 3.52 percent in August, down by 2.43 percent from July; down by 5.7 percent since June and down by 10.39 percent from a year ago. The total U.S. foreclosure pre-sale inventory rate fell to 0.54 percent in August, down by 4.41 percent from July and down by 28.17 percent from a year ago. Total foreclosure starts fell to 48,000, down by 0.62 percent from July and down by 12.25 percent from a year ago.

Black Knight said delinquencies resulting from 2017’s hurricanes continued to decline, with just 25,100 remaining in the mainland U.S.

However, Black Knight cautioned 391,000 homeowners with mortgages were located in Hurricane Florence’s evacuation area, with an estimated 283,000 in the 18 North Carolina counties declared disaster areas so far by FEMA.

“If homeowners face similar per capita impacts to those seen from Hurricanes Harvey and Irma last year, it could result in thousands of mortgage holders falling behind on payments,” Black Knight said.

Other August report data:

–Properties 30 or more days past due but not in foreclosure: 1.818 million, down by 43,000 from July and down by 185,000 from a year ago.

–Properties 90 or more days past due but not in foreclosure 510,000, down by 18,000 from July and down by 47,000 from a year ago.

–Properties in foreclosure pre-sale inventory: 280,000, down by 13,000 from July and down by 105,000 from a year ago.

–Properties 30 or more days past due or in foreclosure: 2.099 million, down by 55,000 from July and down by 290,000 from a year ago.

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

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

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