Black Knight Notes Uptick in Early Delinquencies


Several measures of mortgage distress moved up in September
including the early delinquency rate according to Black Knight Financial
Services.  The company’s “first look” at
September foreclosure data shows the rate of loans that were 30 or more days
past due rose 1.7 percent compared to August. 
The small blip would not be significant except that it was heavily
weighted toward new delinquencies.

Despite the increase in the delinquency rate to 4.87 percent,
it is still 13.94 percent lower than a year earlier.  Still, while the number of properties that
are 90 days past due but not yet in the process of foreclosure dropped by 8,000
units compared to August the overall number of properties over 30 days past due
jumped by 44,000 meaning a net increase in mortgages 30 to 90 days delinquent
of 36,000 units.

At the end of the
reporting period total delinquencies, not including properties actively in foreclosure,
numbered 2.46 million, down 392,000 from a year earlier.  Of those 817,000 were more than 90 days past
due, a decline of 273,000 year over year.  

Foreclosure starts increased by nearly
five percent month over month but were still down 16.25 percent
year-over-year.  Just under 80,000
properties entered the foreclosure process during the month

The pre-foreclosure inventory –
properties actively in foreclosure – declined by 11,000 month-over-month to a
total of 737,000.  That inventory declined
by 214,000 since the previous September. 
The inventory represents 1.46 percent of all homes with a mortgage in
the U.S.

Distressed loans, including those 30 or
more days past due and in foreclosure, numbered 3.19 million in September.  This was 33,000 more than in August but a net
change of -606,000 since September 2014.

The states the largest percentage of
non-current loans are Mississippi (12.93 percent), New Jersey (10.63 percent),
and Louisiana (10.08 percent).

Foreclosure sales or completed
foreclosures, measured as a percentage of loans more than 90 days past due,
rose to 1.98 percent, an increase of 10.54 percent from August and 16.28
percent compared to a year earlier.

Prepayment activity – often a signal of
the rate of refinancing, continued to slow
Black Knight said it was down to 1.07 percent in September, a 1.74
percent reduction from August, compared to a rate of 12.29 percent in September

Black Knight’s monthly “first look” is
a preview of its Mortgage Monitor.  That report is scheduled for publication in
early November.

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