Although a year-over-year drop in the past-due rate on residential loans was the biggest in four years, there was a month-over-month increase. Foreclosure starts also rose.
Borrowers whose mortgages were either at least 30 days’ delinquent or in the foreclosure pre-sale inventory accounted for 6.20 percent of all borrowers during August.
The rate of home-loan delinquency deteriorated compared to the prior month, when 6.11 percent of all mortgages were previously classified as non-current.
The performance statistics were based on a report released Friday from Black Knight Financial Services.
It was the second year in a row that August’s non-current rate increased from the previous month.
But an improvement has been made by residential loan servicers compared to the same month last year, when the non-current rate was 7.70 percent.
The non-current rate in Mississippi last month was 12.95 percent — higher than in any other state.
Next was New Jersey’s 10.16 percent, then 10.12 percent in Louisiana, 9.04 percent in Maine and 8.92 percent in New York.
North Dakota’s 2.11 percent delinquency rate was the lowest in the nation as of August.
Excluding foreclosures, there were 2.447 million delinquent loans. That put the 30-day rate at 4.83 percent.
Thirty-day delinquency
was up from 4.71 percent in July but improved from 5.90 percent as of August 2014. The 18 percent year-over-year decline was the most since May 2011.
The 90-day rate, excluding foreclosures, was an estimated 1.71 percent in August based on an analysis of Black Knight’s data.
There were 0.696 million loans in the foreclosure pre-sale inventory as of August 2015, leaving the foreclosure rate at 1.37 percent.
The foreclosure rate was lower than
1.40 percent a month earlier and 1.80 percent a year earlier.
Black Knight said that
there were 80,500 foreclosure starts last month, climbing seven percent from July. The report attributed the increase to an rise in repeat foreclosure starts.
But new foreclosure filings dipped more than one percent from August 2014.
