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Black Knight: National Mortgage Delinquency Rate Decreased in October

Summary:
Note: 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: Mortgage Delinquencies Decline for Fifth Consecutive Month in October; Record-Low Rates Push Prepayment Activity to 16-Year High• Mortgage delinquencies improved again in October, falling to 6.44%, the lowest level since March• Despite five consecutive months of improvement, there are still more than 3.4 million delinquent mortgages, nearly twice as many as there were entering the year• Serious delinquencies – loans 90 or more days past due – improved in October as well, but volumes remain at more than five times (+1.8 million) pre-pandemic levels• October’s 4,700 foreclosure starts marked a nearly 90% year-over-year reduction as

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Note: 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: Mortgage Delinquencies Decline for Fifth Consecutive Month in October; Record-Low Rates Push Prepayment Activity to 16-Year High
Mortgage delinquencies improved again in October, falling to 6.44%, the lowest level since March

• Despite five consecutive months of improvement, there are still more than 3.4 million delinquent mortgages, nearly twice as many as there were entering the year

• Serious delinquencies – loans 90 or more days past due – improved in October as well, but volumes remain at more than five times (+1.8 million) pre-pandemic levels

• October’s 4,700 foreclosure starts marked a nearly 90% year-over-year reduction as widespread moratoriums remain in place, while active foreclosure inventory set yet another record low at 178,000

• Record-low interest rates again pushed prepayment activity higher, with October’s prepayment rate of 3.17% setting the highest single-month mark in more than 16 years
emphasis added
According to Black Knight's First Look report, the percent of loans delinquent decreased 3.3% in October compared to September, and increased 90% year-over-year.

The percent of loans in the foreclosure process decreased 1.6% in October and were down 31% 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 6.44% in October, down from 6.66% in September.

The percent of loans in the foreclosure process decreased in October to 0.33%, from 0.34% in September.

The number of delinquent properties, but not in foreclosure, is up 1,651,000 properties year-over-year, and the number of properties in the foreclosure process is down 77,000 properties year-over-year.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
  Oct
2020
Sept
2020
Oct
2019
Oct
2018
Delinquent6.44%6.66%3.39%3.64%
In Foreclosure0.33%0.34%0.48%0.52%
Number of properties:
Number of properties
that are delinquent,
but not in foreclosure:
3,437,0003,542,0001,786,0001,884,000
Number of properties
in foreclosure
pre-sale inventory:
178,000181,000255,000267,000
Total Properties3,616,0003,722,0002,041,0002,152,000

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