Black Knight June ‘First Look’ Sees Calendar-Driven Spike in Delinquencies

Black Knight, Jacksonville, Fla., issued its June ‘First Look’ Mortgage Monitor, noting a seasonal quirk resulted in a spike in mortgage delinquencies from May’s record low.

The report said because June ended on a Sunday, combined with a “typical” seasonal rise in mortgage delinquencies, pushed the national delinquency rate up by nearly 11 percent to 3.73% in June, down from May’s record low. Despite the increase, delinquencies still fell by 0.2% from a year ago.

Black Knight said while overall non-current inventory rose in June, serious delinquencies (loans 90 or more days past due, but not yet in active foreclosure) fell to their lowest level in 12 years

The report noted despite increased refinance incentive from lower interest rates, prepayment activity dipped for the first time in five months, falling 7.5% from May.

Other June report data:

–Total U.S. foreclosure pre-sale inventory rate: 0.5%, up by 1.55% from May but down by 12.13% from a year ago.

–Total U.S. foreclosure starts: 40,100, up by 2.82% in May but down by 7.82% from a year ago.

–Properties 30 or more days past due, but not in foreclosure: 1.950 million, up by 190,000 from May and up by 25,000 from a year ago.

–Properties 90 or more days past due but not in foreclosure: 450,000, down by 6,000 in May and down by 93,000 from a year ago.

–Properties in foreclosure pre-sale inventory: 259,000, up by 4,000 from May but down by 32,000 from a year ago.

–Properties 30 or more days past due or in foreclosure: 2.209 million, up by 194,000 from May but down by 7,000 from a year ago.

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

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

–States with highest percentage of 90-plus days delinquent loans: Mississippi, Alabama, Louisiana, Arkansas, Tennessee.