The number of single-family loans that were previously non-performing but are now paying has climbed this year. A majority of the total have been paying for more than two years.
As of July 2018, there were 1.84 million residential loans with a collective unpaid balance of $306 billion that had been at least 120 days past due at some point but were now current.
America’s book of reperforming mortgages expanded versus at the start of the year, with the inventory growing by 30,000 units during that period.
Black Knight Inc. discussed the details in its Mortgage Monitor July 2018 Report.
Sixty percent of the reperforming mortgages have been so for more than two years. That worked out to more than 1.1 million loans, mostly the same level it’s maintained for three-and-a-half years.
Black Knight noted that 475,000 reperforming loans have been current for five years, and almost half of all reperforming loans have been current for three years.
The report indicated that half of all reperforming loans were originated between 2004 and 2006, while two-thirds were originated from 2004 until 2008.
Forty-five percent of the loans were brought current through a proprietary loan modification. Loans modified through the Home Affordable Modification Program made up another 30 percent of the latest loan count.
That left a quarter of reperforming mortgages that were cured without a loan modification.
