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Black Knight: Delinquencies Hit Lowest Level Since April 2007

The total U.S. loan delinquency rate (on loans 30 or more days past due but not in foreclosure) in February was 4.45%, a decrease of 12.57% compared with January and a decrease of 15.93% compared with February 2015, according to Black Knight Financial Services’ First Look report.

About 2.252 million properties were 30 or more days past due but not in foreclosure - a decrease of about 323,000 compared with January and a decrease of 419,000 from February 2015.

About 772,000 properties were seriously delinquent (90 or more days past due but not in foreclosure) - a decrease of 59,000 from the prior month and a decrease of 247,000 from a year ago.

There were about 84,300 foreclosure starts in February - an increase of 17.25% compared with January and an increase of 9.20% compared with February 2015.

The total U.S. foreclosure presale inventory stood at about 655,000 units, or about 1.30% of all homes with a mortgage - a decrease of 4,000, or about 0.64%, compared with the prior month and a decrease of 211,000, or 24.59%, compared with a year earlier.

The monthly prepayment rate was 0.89%, an increase of 10.23% compared with January but a decrease of 22.12% compared with February 2015.

About 2.907 million properties were 30 or more days past due or in foreclosure - a decrease of 327,000 compared with the prior month and a decrease of 630,000 compared with a year earlier. That’s the lowest non-current inventory in eight years.

 

Report: Most Underwater Properties Are In The Lower Price Tier

Although the number of homeowners who are underwater on their mortgages continues to decrease nationwide, a higher percentage of those who remain underwater are in lower-priced homes, according to a report from Black Knight Financial Services.

According to the mortgage software firm’s monthly Mortgage Monitor report, roughly 6.5% of all homeowners with a mortgage were underwater as of February. That’s down 31% compared with February 2015.

However, when looking at properties in the lowest price tier, about 16.2% with a mortgage were still underwater. Although the lowest price tier is improving, it’s happening at a much slower pace, the firm notes.

As of the end of 2015, there were still 3.2 million borrowers in negative equity positions, representing $126 billion in underwater first- and second-lien housing debt, Black Knight’s research finds.

The firm also notes that because home price appreciation has been so geographically spotty in recent years, the recovery is “imbalanced,” with some areas improving and others being left behind the recovery.

“Throughout 2015, the negative equity population in the U.S. decreased by over 30 percent, bringing another 1.5 million homeowners out from underwater on their mortgages,” says Ben Graboske, senior vice president of Black Knight Data and Analytics, in a release. “However, even after four years of improvement, the recovery has not reached all corners.

“When we looked at the population by home price levels, we found that over half of the nation’s underwater properties are in the lowest 20 percent of their respective markets,” he says. “That’s the highest share on record. In fact, while the national negative equity rate is now 6.5 percent, for homes in the lowest price tier, it’s over 16 percent. Furthermore, this group is seeing a slower recovery than the nation as a whole. At the current rate of improvement, it would take more than five years for the negative equity rate in this lowest price tier to reach 2005 levels - roughly two-and-a-half years longer than homes in the top 20 percent.”

 

ABA: Delinquencies On Home Equity Loans, Lines Of Credit Keep Falling

Delinquencies on home equity loans fell 23 basis points to reach 2.68% of all accounts in the fourth quarter of 2015, while delinquencies for home equity lines of credit fell 13 basis points to 1.18% of all accounts, according to the American Bankers Association’s (ABA) Consumer Credit Delinquency Bulletin.

That means delinquency rates on these two product types are approaching their 15-year averages for the first time since the recession, the ABA reports.

Property improvement loan delinquencies increased five basis points in the fourth quarter compared with the third quarter, rising to 0.92% of all accounts.

Installment loan delinquencies remained near historical lows, matching the third quarter’s composite number.

“It’s been a long, rocky road, but home equity delinquencies have finally worked their way back to historical norms,” says James Chessen, chief economist for the ABA, in a release. “The strong and consistent rise in home prices over the last three years has restored equity, which makes keeping loans current even more of a top priority for homeowners. With rising home equity and shrinking delinquencies becoming the status quo, banks are more willing to extend new home equity loans and lines to qualified borrowers.”

 

OCC: Mortgage Performance Continued To Improve In Q4

Performance of first-lien mortgages continued to improve during the fourth quarter of 2015, according to the latest data from the Office of the Comptroller of the Currency (OCC).

The OCC’s quarterly Mortgage Metrics Report shows that 94.1% of mortgages were current and performing at the end of the quarter compared with 93.9% in the third quarter.

Servicers that report to the OCC initiated 63,387 new foreclosures during the fourth quarter compared with 75,395 in the fourth quarter of 2014.

Servicers implemented 35,118 mortgage modifications in the fourth quarter compared with 47,561 in the fourth quarter of 2014. Of those modifications, about 87% reduced borrowers’ monthly payments.

The mortgages included in the OCC’s quarterly report comprise about 41% of all residential mortgages outstanding in the U.S.

That’s about 21.5 million loans totaling $3.7 trillion in principal balances.

 

Freddie Mac Auctions $1.4 Billion In Nonperforming Loans

Freddie Mac recently auctioned about $1.4 billion in seriously delinquent loans, separated into seven pools.

Community Loan Fund of New Jersey Inc. is the winning bidder on two of the pools, valued at $27 million and $37.6 million. These two pools were auctioned via the company’s Extended Timeline Pool Offering (EXPO) program, which targets participation by smaller investors, including nonprofits and minority- and women-owned businesses.

In addition, LSF9 Mortgage Holdings was the winning bidder on three pools of nonperforming loans valued at $132.8 million, $335.7 million and $354.1 million that were auctioned as Standard Pool Offerings (SPO). Also, Rushmore Loan Management Services was the winning bidder on two SPO pools valued at $373.9 million and $165 million.

All of the 6,816 loans contained in the seven pools are serviced by Nationstar Mortgage, Freddie Mac says in a press release.

The sale consisted of two transactions: the EXPO loans sold on March 10 and the SPO loans sold on Feb. 25.

 

Fannie Mae’s NPL Sell-Off Continues

Fannie Mae is selling off another batch of nonperforming loans (NPLs).

This latest sale features four larger pools of approximately 8,200 loans totaling $1.527 billion in unpaid principal balance (UPB) and a Community Impact Pool of approximately 80 loans, focused in the Miami area, totaling about $20 million in UPB.

Fannie Mae’s Community Impact Pools are smaller pools of loans that are marketed to smaller investors, nonprofit organizations, and minority- and women-owned businesses. They tend to be geographically focused and higher occupancy.

“The NPLs that are included in today’s sale announcement have been previously solicited for loss mitigation opportunities by Fannie Mae servicers, but they, unfortunately, remain seriously delinquent,” says Joy Cianci, senior vice president of single-family credit portfolio management for Fannie Mae, in a release. “We believe other investors will offer additional opportunities for these borrowers to avoid foreclosure.

Delinquency and Default

Black Knight: Delinquencies Hit Lowest Level Since April 2007

 

 

 

 

 

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