by Calculated Risk on 8/24/2022 08:36:00 AM
o Serious delinquencies – loans 90 or more days past due, but not yet in active foreclosure – pulled back in July after worsening for the first time in 22 months in June
o The number of seriously delinquent loans curing to current has dropped steadily over recent months, from 104K in March to 58K in July, indicating that the easiest workouts have likely been completed
o Foreclosure starts retreated 25% from June for a total of 17.7K starts – some 55% below pre-pandemic levels for the month of July – equating to just 3% of 90+ day past-due loans
o Though still up from record lows that came from widespread moratoriums and forbearance protections last year, the number of loans in active foreclosure declined slightly by 6K in July
o Prepayment activity dropped by another 18% in July and is now down by 67% from the same time last year as rising rates put downward pressure on both purchase and refinance lending
According to Black Knight’s First Look report, the percent of loans delinquent increased 1.9% in July compared to June and decreased 30% year-over-year.
Black Knight reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) was 2.89% in July, up from 2.84% in June.
2020Delinquent2.89%2.84%4.14%6.91%In Foreclosure0.52%0.53%0.26%0.36%Number of properties:Number of propertiesthat are delinquent,but not in foreclosure:1,543,0001,511,0002,206,0003,692,000Number of propertiesin foreclosurepre-sale inventory:184,000190,000140,000190,000Total Properties1,728,0001,700,0002,346,0003,881,000