From Black Knight: Black Knight: Overall Mortgage Delinquencies Edge Closer to Pre-Pandemic Levels, But 1.45M Remain Seriously Past Due as Foreclosure Moratorium Expired at End of July
• The national delinquency rate saw a 5% reduction in July and at 4.14% is now down by nearly half since May of last year
• Delinquencies have now improved in 12 of the last 14 months, with the two monthly increases being calendar-related as opposed to being indicative of worsening performance
• While overall delinquency volumes continue to edge closer to pre-pandemic levels, the number of serious delinquencies were still significantly elevated as federal foreclosure moratoria expired at the end of July
• Some 1.45 million borrowers remained 90 or more days past due – but not yet in foreclosure – entering August, more than 1 million more than at the onset of the pandemic
• Foreclosure starts remained muted in July, the final month of the foreclosure moratorium on federally backed mortgages, down 58% from the same time last year
• While the number of loans in active foreclosure fell by 5,000 to yet another record low, potential foreclosure activity in the coming months warrants close observation
• After rising in June, prepayment activity slid by 11% in July; however, low 30-year rates in recent weeks have resulted in a modest resurgence in refinance incentive which may impact August prepay numbers
emphasis added
According to Black Knight’s First Look report, the percent of loans delinquent decreased 5.2% in July compared to June, and decreased 40% year-over-year.
The percent of loans in the foreclosure process decreased 4.0% in July and were down 26% over the last year.
Black Knight reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) was 4.14% in July, down from 4.37% in June.
The number of delinquent properties, but not in foreclosure, is down 1,486,000 properties year-over-year, and the number of properties in the foreclosure process is down 50,000 properties year-over-year.
| Black Knight: Percent Loans Delinquent and in Foreclosure Process | ||||
|---|---|---|---|---|
| July 2021 |
June 2021 |
July 2020 |
July 2019 |
|
| Delinquent | 4.14% | 4.37% | 6.91% | 3.46% |
| In Foreclosure | 0.26% | 0.27% | 0.36% | 0.49% |
| Number of properties: | ||||
| Number of properties that are delinquent, but not in foreclosure: |
2,206,000 | 2,320,000 | 3,692,000 | 1,807,000 |
| Number of properties in foreclosure pre-sale inventory: |
140,000 | 145,000 | 190,000 | 258,000 |
| Total Properties | 2,346,000 | 2,466,000 | 3,881,000 | 2,065,000 |