Black Knight: National Mortgage Delinquency Rate Increased in February

Note: Loans in forbearance are counted as delinquent in this survey, but those loans are not reported as delinquent to the credit bureaus.

From Black Knight: Black Knight’s First Look: Mortgage Delinquencies Rise for the First Time in Nine Months; Increase Largely Calendar-Driven but Bears Watching

• After eight consecutive months of improvement, the national mortgage delinquency rate rose in February from 5.85% to 6.0%

• The rise was largely calendar-related, as February is both a short month and ended on a Sunday – cutting the days on which payments can be processed – which has historically impacted performance metrics

• Delinquency rate increases were seen broadly across portfolios, geographies and asset classes

• The increase was primarily seen in early-stage delinquencies, while the number of loans 90 or more days past due but not yet in foreclosure (including those in active forbearance) saw a modest decline

• Prepayment activity edged upward in February as well, but recent 30-year interest rate increases are likely to put downward pressure on prepayment rates in the coming months

• Both foreclosure starts and active foreclosure inventory again hit new record lows, as recently extended foreclosure moratoriums continue to suppress activity
emphasis added

According to Black Knight’s First Look report, the percent of loans delinquent increased 2.6% in February compared to January, and increased 83% year-over-year.

The percent of loans in the foreclosure process decreased 1.1% in February 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 6.00% in February, up from 5.85% in January.

The percent of loans in the foreclosure process decreased slightly in February to 0.32%, from 0.32% in January.

The number of delinquent properties, but not in foreclosure, is up 1,449,000 properties year-over-year, and the number of properties in the foreclosure process is down 71,000 properties year-over-year.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
Delinquent 6.00% 5.85% 3.28% 3.89%
In Foreclosure 0.32% 0.32% 0.45% 0.51%
Number of properties:
Number of properties
that are delinquent,
but not in foreclosure:
3,186,000 3,130,000 1,737,000 2,019,000
Number of properties
in foreclosure
pre-sale inventory:
168,000 171,000 239,000 264,000
Total Properties 3,354,000 3,301,000 1,976,000 2,284,000