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Mortgage Delinquency Sinks, Foreclosure Starts Soar

Mortgage News

As last year’s hurricanes continue to have an impact on the performance of mortgages, delinquency tumbled and new foreclosure filings soared.

At the conclusion of January, there were 2.539 million U.S. residential loans that were either 30 days or more past due or in foreclosure.

Included in the non-current mortgage inventory were
2,202,000 mortgages that were not in foreclosure and 337,000 loans in the foreclosure pre-sale inventory.

The performance data was provided by Black Knight Inc.

Out of the 146,000 home loans that are delinquent because of Hurricanes Harvey and Irma, 132,000 were at least 90 days delinquent.

An analysis of Black Knight’s data indicates that total U.S. mortgages outstanding as of Jan. 31 were approximately 51.087 million.

Last month’s non-current rate worked out to 4.97 percent — plunging 39 basis points from the end of last year and tumbling 23 BPS from the same point last year.

At 10.95 percent, Mississippi had the worst non-current rate of any state. Next was Louisiana’s 9.34 percent, followed by Florida’s 8.34 percent, Alabama’s 7.47 percent and West Virginia’s 7.17 percent. At 2.05 percent, Colorado’s non-current rate was the best in the country.

January 2018’s U.S. rate non-current reflected a 30-day rate, excluding foreclosures, of
4.31 percent, sinking 40 BPS from a month earlier. Black Knight attributed the improvement to “calendar-driven effects and fewer hurricane-related delinquencies.”

Thirty-day delinquency, however, has worsened by 6 BPS compared to one year earlier.

Ninety-day delinquency including foreclosures was an estimated 2.04 percent as of Jan. 31, 2018.

The other component of the non-current rate, the foreclosure inventory rate, was 0.66 percent most recently,
inching up a basis point on a month-over-month basis. The bump was only the second increase in more than five years. The foreclosure rate has tumbled 29 BPS on a year-over-year basis.

Unlike delinquency’s marked improvement, new foreclosure filings turned sharply higher — to 62,300 from 44,500 in December 2017 as foreclosures put on hold because of the hurricanes resumed.

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