From Black Knight: Black Knight: Delinquencies Improved Again in November 2020, But Nearly 2.2 Million Seriously Past-Due Mortgages Remain
• Despite seasonal headwinds, mortgage delinquencies improved for the sixth consecutive month in November 2020, falling to 6.33% from 6.44% in the month prior
• The national delinquency rate is now down 1.5 percentage points from its peak of 7.8% in May but remains a full three percentage points (+93%) above pre-pandemic levels
• While early-stage delinquencies – borrowers one or two payments past due – have fallen back below pre-pandemic levels, seriously past-due (90+ days) mortgages remain 1.8 million above pre-pandemic levels
• Foreclosure activity remains muted as widespread moratoriums remain in place
• November’s 4,400 foreclosure starts and 176,000 loans in active foreclosure are both at their lowest levels on record since Black Knight began reporting the metrics in 2000
• Prepayments fell 11% from October’s 16-year high; however, with interest rates at record lows and refinance incentive at an all-time high, prepay activity is likely to remain elevated in the coming months
emphasis added
According to Black Knight’s First Look report, the percent of loans delinquent decreased 1.8% in November compared to October, and increased 79% year-over-year.
The percent of loans in the foreclosure process decreased 1.6% in November and were down 30% 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 6.33% in November, down from 6.44% in October.
The number of delinquent properties, but not in foreclosure, is up 1,513,000 properties year-over-year, and the number of properties in the foreclosure process is down 72,000 properties year-over-year.
| Black Knight: Percent Loans Delinquent and in Foreclosure Process | ||||
|---|---|---|---|---|
| Nov 2020 |
Oct 2020 |
Nov 2019 |
Nov 2018 |
|
| Delinquent | 6.33% | 6.44% | 3.53% | 3.71% |
| In Foreclosure | 0.33% | 0.33% | 0.47% | 0.52% |
| Number of properties: | ||||
| Number of properties that are delinquent, but not in foreclosure: |
3,381,000 | 3,437,000 | 1,868,000 | 1,925,000 |
| Number of properties in foreclosure pre-sale inventory: |
176,000 | 178,000 | 248,000 | 268,000 |
| Total Properties | 3,557,000 | 3,616,000 | 2,116,000 | 2,193,000 |