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Black Knight: National Mortgage Delinquency Rate Decreased in September

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by Calculated Risk on 10/22/2021 07:00:00 AM

Note: At the beginning of the pandemic, the delinquency rate increased sharply (see table below). 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: Foreclosure Starts Reverse Course in September, Pulling Back Despite Moratoria Expiration; Delinquency Rate Falls Below 4% for First Time Since Start of Pandemic

o The national delinquency rate fell to 3.91% in September – the first time it’s been below 4% in 18 months – marking a 2.3% decline from August and 41.3% from the same time last year

o What would have been stronger improvement was partially offset by delinquencies rising by 7,800 in FEMA-declared disaster areas in hurricane-impacted Louisiana and by 11,000 in the state as a whole

o Foreclosure starts also dipped in September after seeing a noticeable rise in August in the wake of the federal foreclosure moratoria expiration

o September’s 3,900 foreclosure starts was the third lowest monthly total on record and within 6% of the record low set back in April of this year

o likewise, the number of active foreclosures fell in September as well, hitting yet another all-time low

o With nearly 400,000 mortgage holders having exited forbearance plans in just the first two weeks of October alone, it will be essential to track foreclosure metrics closely in the coming months

o Some 1.2 million homeowners remain 90 or more days past due on their mortgages but are not yet in foreclosure, including those who are still in active forbearance plans

emphasis added

According to Black Knight’s First Look report, the percent of loans delinquent decreased 2.3% in September compared to August, and decreased 41% year-over-year.

The percent of loans in the foreclosure process decreased 4.6% in September and were down 25% 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 3.91% in September, down from 4.00% in August.

The percent of loans in the foreclosure process decreased in September to 0.26%, from 0.27% in August.

The number of delinquent properties, but not in foreclosure, is down 1,474,000 properties year-over-year, and the number of properties in the foreclosure process is down 46,000 properties year-over-year.

Black Knight: Percent Loans Delinquent and in Foreclosure Process Sept
2021Aug
2021Sept
2020Sept
2019Delinquent3.91%4.00%6.66%3.53%In Foreclosure0.26%0.27%0.34%0.48%Number of properties:Number of properties
that are delinquent,
but not in foreclosure:2,068,0002,122,0003,542,0001,854,000Number of properties
in foreclosure
pre-sale inventory:135,000142,000181,000252,000Total Properties2,203,0002,264,0003,722,0002,106,000

October 21st COVID-19: Progress

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