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Mortgage Delinquency Worsens, Foreclosures Mixed

Mortgage News

Mortgage Daily

                                                 July 26, 2016

While the foreclosure rate fell last month, 30-day delinquency climbed for the third month in a row and foreclosure starts rose for the second straight month.

As of this year’s midpoint, there were 2,736,000 U.S. residential loans that were either at least 30 days past due or were in the process of foreclosure.

The count
deteriorated compared to May 31, 2016, when there were 2,727,000 non-current loans. But the number improved from 3,183,000 a year earlier.

Black Knight Financial Services reported the mortgage performance data.

The June 2016 total was comprised of 2,178,000 loans that were at least 30 days past due and 558,000 loans in the foreclosure pre-sale inventory.

The latest count brought the non-current rate to 5.41 percent, worsening from 5.38 percent as of May 31, 2016.

But the non-current rate improved from the previously reported 6.28 percent as of June 30, 2015.

Last month’s non-current
rate was 11.19 percent in Mississippi, the highest of any state. Louisiana’s 9.18 percent was next, then New Jersey’s 8.81 percent, Alabama’s 7.97 percent and Maine’s 7.83 percent.

At 2.39 percent, North Dakota had the lowest non-current rate in the nation.

June 2016’s U.S. non-current rate included a 30-day rate, excluding foreclosures, of
4.31 percent.

Thirty-day delinquency deteriorated from 4.25 percent a month earlier
and has moved higher each month since March, when it was 4.08 percent.

But the 30-day rate declined from 4.82 percent a year earlier.

Also reflected in the latest non-current rate was a
1.10 percent foreclosure pre-sale inventory rate, falling from 1.13 percent in May and 1.46 percent in June 2015.

A Mortgage Daily analysis of Black Knight’s data indicates that the 90-day delinquency rate, including foreclosures, was around 2.47 percent in June 2016, an improvement over the prior month’s 2.55 percent rate and the year prior’s 3.23 percent rate.

Mortgage servicers started the foreclosure process on 69,300
loans last month, more than the 62,100 in May and the second month in a row of deterioration.

Still, foreclosure starts have diminished from 79,000 in June 2015. In addition, “first-time foreclosure starts in Q2 2016 were at their lowest level in over 16 years,” the report said.

First-half 2016 foreclosure starts amounted to 396,100.

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