Black Knight Says Delinquencies Have Fallen by 1.5M YoY

While
serious delinquencies remain a concern, homeowners are recovering quickly from
pandemic induced mortgage delinquencies. Black Knight’s “first look” at November
loan performance found a further decline in the nation’s delinquency rate to
3.59 percent. This is a 4.11 percent improvement from October and down 43.29
percent from the rate in November 2020.

At
the end of November there were 1.91 million homeowners who were 30 days or more
past due on their mortgage loans but not in foreclosure, an improvement of 80,000
since the end of October. One year earlier 3.38 million loans were past due.

The
number of serious delinquencies, loans more than 90 days past due but not in
foreclosure, also dropped by 80,000 in a month. While 1.03 million loans remain
in serious delinquency, this is 1.17 million fewer than in November 2020.

Even
though the federal moratorium on foreclosures expired at the end of July, only
132,000 loans are in the foreclosure inventory, 0.25 percent of all active
loans. Foreclosure starts in November totaled 3,700, down 7.50 percent
month-over-month and 15.9 percent fewer than in November of last year. The
company says both of those November foreclosure statistics are record lows.

Over
800,000 homeowners have exited forbearance programs over the last year. At the
end of November about 560,000 loans remain in post-forbearance loss mitigation.

Black
Knight says the sum of non-current loans, including those in foreclosure, was
2.04 million at the end of November. Delinquency rates were highest in
Louisiana at 7.95 percent, Mississippi at 7.30 percent, and West Virginia at
5.54 percent but all three states have seen year-over-year improvement of at
least 26 percent.

Mortgage
prepayments hit their lowest level in nearly two years in November as rising
interest rates damped down refinance active. Even with an 8.9 percent slowdown,
the single month mortality rate of 1.78 percent is almost 300 percent higher year-over-year.

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