Black Knight: National Mortgage Delinquency Rate Decreased in October

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

Delinquent
6.44%
6.66%
3.39%
3.64%

In Foreclosure
0.33%
0.34%
0.48%
0.52%

Number of properties:

Number of properties
that are delinquent,
but not in foreclosure:
3,437,000
3,542,000
1,786,000
1,884,000

Number of properties
in foreclosure
pre-sale inventory:
178,000
181,000
255,000
267,000

Total Properties
3,616,000
3,722,000
2,041,000
2,152,000

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