Black Knight: Mortgage Delinquencies Declined in February

by Bill McBride on 3/23/2017 07:00:00 AM

From Black Knight: Black Knight Financial Services’ First Look at February Mortgage Data: Prepayment Activity Continues to Decline, Down 40 Percent So Far in 2017

• Prepayment speeds (historically a good indicator of refinance activity) declined 15 percent in February, marking a 40 percent overall year-to-date decline and the lowest monthly rate in three years
• Delinquencies continued their seasonal decline, ticking down .98 percent from January
• Foreclosure starts fell 18 percent from last month to 31 percent below last year’s levels
• Active foreclosure inventory now stands at 470,000, the lowest such level since June 2007

According to Black Knight's First Look report for February, the percent of loans delinquent decreased 1.0% in February compared to January, and declined 5.5% year-over-year.
The percent of loans in the foreclosure process declined 1.9% in February and were down 28.5% over the last year.
Black Knight reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) was 4.21% in February, down from 4.25% in January.
The percent of loans in the foreclosure process declined in February to 0.93%.
The number of delinquent properties, but not in foreclosure, is down 117,000 properties year-over-year, and the number of properties in the foreclosure process is down 185,000 properties year-over-year.
Still improving, but the improvement has slowed.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
Feb
2017
Jan
2017
Feb
2016
Feb
2015
Delinquent 4.21% 4.25% 4.45% 5.30%
In Foreclosure 0.93% 0.94% 1.30% 1.72%
Number of properties:
Number of properties that are delinquent, but not in foreclosure: 2,135,000 2,162,000 2,252,000 2,671,000
Number of properties in foreclosure pre-sale inventory: 470,000 481,000 655,000 866,000
Total Properties 2,605,000 2,643,000 2,907,000 3,537,000

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