From Black Knight: Black Knight: 1.55 Million Serious Delinquencies Remain; At Current Rate of Reduction, 1 Million Still Likely As September’s Wave of Forbearance Expirations Begins
• The national delinquency rate hit its lowest level since the onset of the pandemic and is now back below its pre-Great Recession average
• Despite the improvement, there are more than 1.5 million homeowners 90 or more days past due on their mortgages but who are not in foreclosure, still nearly four times pre-pandemic levels
• Serious delinquency rates remain elevated by more than a full percentage point across all 50 states, with Hawaii and Nevada serious delinquency rates remaining elevated by 3.4 percentage points
• Though serious delinquencies remain significantly elevated, the share of mortgages in active foreclosure fell to yet another record low in June at 0.27%
• Recent pullbacks in interest rates resulted in prepayment activity edging upward for the first time in three months
emphasis added
According to Black Knight’s First Look report, the percent of loans delinquent decreased 7.6% in June compared to May, and decreased 42% year-over-year.
The percent of loans in the foreclosure process decreased 1.7% in June and were down 24% 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 4.37% in June, down from 4.73% in May.
The number of delinquent properties, but not in foreclosure, is down 1,714,000 properties year-over-year, and the number of properties in the foreclosure process is down 47,000 properties year-over-year.
| Black Knight: Percent Loans Delinquent and in Foreclosure Process | ||||
|---|---|---|---|---|
| June 2021 |
May 2021 |
June 2020 |
June 2019 |
|
| Delinquent | 4.37% | 4.73% | 7.59% | 3.73% |
| In Foreclosure | 0.27% | 0.28% | 0.36% | 0.50% |
| Number of properties: | ||||
| Number of properties that are delinquent, but not in foreclosure: |
2,320,000 | 2,511,000 | 4,034,000 | 1,950,000 |
| Number of properties in foreclosure pre-sale inventory: |
145,000 | 148,000 | 192,000 | 259,000 |
| Total Properties | 2,466,000 | 2,659,000 | 4,226,000 | 2,209,000 |