Black Knight: Delinquency, Foreclosure Rates Stabilizing

The mortgage delinquency rate (loans 30 or more days past due but not in foreclosure) reached 4.46% in November – up 2.55% compared with October but down 9.33% compared with November 2015, according to Black Knight Financial Services’ First Look report.

Black Knight describes it as “a relatively mild seasonal increase by historical standards.”

As of the end of the month, about 2.263 million properties were delinquent – a decrease of 61,000 compared with October.

About 682,000 properties were seriously delinquent (90 days or more past due but not in foreclosure) – an increase of about 5,000 compared with October but a decrease of 145,000 compared with November 2015.

Black Knight says the annual improvement in mortgage delinquency rates is beginning to slow as the market “normalizes.”

There were about 60,400 foreclosure starts in November, according to Black Knight’s estimates – an increase of 6.90% compared with October and a decrease of 9.31% compared with November 2015.

The total U.S. foreclosure presale inventory rate stood at about 0.98%, a decrease of 1.35% compared with the previous month and a decrease of 28.88% compared with one year earlier.

As of the end of the month, there were about 498,000 properties in the foreclosure presale inventory – a decrease of 6,000 compared with October and a decrease of 200,000 compared with November 2015.

Black Knight says the number of loans in active foreclosure dropped below 500,000 for the first time in nearly 10 years.

The monthly prepayment rate stood at about 1.43%, a decrease of 4.20% month over month and an increase of 56.07% compared with one year earlier.

Black Knight says prepayment activity remains strong, for now, as pre-interest-rate-rise applications continue to close.

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