While the foreclosure rate eased last month, mortgage delinquency edged higher. Loan performance is beginning to be impacted by hurricane activity.
As of Aug. 31, 2017, there were 2.389 million U.S. residential loans that were either at least 30 days delinquent or in the process of foreclosure.
The total included 2.003 million mortgages that were past due at least 30 days and another 385,000 properties in the foreclosure pre-sale inventory.
The metrics were released Thursday by Black Knight Financial Services.
The latest count brought the non-current rate to 4.69 percent. Delinquency deteriorated from 4.68 percent in July. But a nice improvement was made from August 2016, when the rate was 5.28 percent.
At
10.47 percent, Mississippi had the worst non-current rate as of August 2017. After that was Louisiana’s 8.82 percent, then Alabama’s 7.22 percent, West Virginia’s 6.95 percent and Maine’s 6.52 percent.
Colorado’s 2.11 percent was the lowest non-current rate last month.
Included in the latest U.S. non-current rate was a 3.93 percent 30-day rate excluding foreclosures. The 30-day rate increased from 3.90 percent a month earlier
but decreased from 4.24 percent a year earlier.
The report indicated that more than 6,700 mortgages became at least 30 days delinquent because of Hurricane Harvey. Another thousand borrowers who were already 30 days past due missed an additional payment because of the hurricane.
“Based on observations from previous hurricanes, the heaviest impact on mortgage delinquency rates will come in September,” the report stated.
The U.S. 90-day rate, including foreclosures, was
1.85 percent in August 2017 based on a Mortgage Daily analysis of Black Knight data.
The foreclosure inventory rate was 0.76 percent last month, down 2 basis points from July and 28 BPS better than August 2016.
The
54,700 foreclosure starts in August 2017 brought the year-to-date total to 461,700.
