The national mortgage delinquency rate in November stood at about 4.55% of all loans, an increase of 2.54% compared with October and an increase of 2.04% compared with November 2016, according to Black Knight’s First Look Mortgage Report.
As of the end of November there were about 2.3 million homes in early stage delinquency (30 days or more past due but not in foreclosure), an increase of about 62,000 in October and increase of about 61,000 compared with November 2016.
About 666,000 properties were seriously delinquent (90 days or more past due but not in foreclosure), an increase of 13% or about 77,000 compared with October but down about 16,000 compared with a year earlier. The 13% month-over-month increase is the largest since 2008, as the financial crisis began to unfold, Black Knight says.
The increase in delinquencies is at least in part due to the impact of the storms that ravaged Texas, Florida and Puerto Rico this fall. In fact, Black Knight says more than 85% percent – approximately 66,000 – of the month’s 77,000 new severely delinquent loans can be attributed to hurricanes Harvey and Irma.
As a result, the current estimate of 90-day delinquencies resulting from Harvey and Irma totals over 85,000, the firm says.
However, the impact from the storms on delinquency rates is starting to subside. While the inflow of new hurricane-driven delinquencies related to Irma increased 8,200, month-over-month, those related to Harvey decreased by 8,400.
The foreclosure inventory rate as of the end of November stood at about 0.66%, a decrease of 3.15% compared with October and a decrease of 32.67% compared with November 2016.
As of the end of the month there were about 337,000 homes in the foreclosure inventory, a decrease of about 11,000 compared with October and a decrease of about 161,000 compared with a year earlier.
There were about 47,800 foreclosure starts in November, a decrease of 4.78% compared with the previous month and down 20.86% compared with a year earlier.
Prepayment activity rebounded in October, up 17% month-over-month, but still 25% below last November’s level.
