A First Look at July Performance Data

Black Knight Financial Services released its “First Look” atrnits July loan level performance data which continues to show a decline in mostrnmeasures of mortgage distress.  Delinquencies,rnforeclosure starts, and the foreclosure inventory all declined for the monthrnalthough actual foreclosures did increase. rnThe monthly prepayment rate also fell; this metric is closely tied tornthe incidence of refinancing.</p

The national delinquency rate, loans 30 or more days pastrndue but not in foreclosure, stood at 4.71 percent in July, a 2.22 percentrndecline from June and down 16.46 percent year-over-year.  The number of delinquent mortgages numberedrn2.39 million, down 55,000 from the previous month and 460,000 from July 2014.</p

Of those delinquencies 886,000 were considered serious, thatrnis 90 or more days past due but not in foreclosure.  This is down 9,000 month-over-month and is arndecline of a quarter million loans on an annual basis.</p

There were 75,400 foreclosure starts during the month, reductionsrnof 4.56 percent and 16.87 percent from the two earlier periods.  Even with this number foreclosure starts thernnumber of homes in the process of foreclosure declined by 28,000 to 711,000 inrnJuly and the foreclosure inventory has shrunk by 224,000 homes over the previousrnyear. Completed foreclosures increased by 2.15 percent and 5.67 percent,rnrepresenting 1.95 percent of seriously delinquent mortgages.  </p

The monthly prepayment rate was 1.26 percent of mortgagedrnhomes, a decline of 9.41 percent from June. rnThe rate was 20.42 percent higher than the previous July.</p

Mississippi has the highest percentage of distressed loansrnat 12.75 percent, followed by New Jersey, Louisiana, Maine, and New York.  All five states have seen substantialrndeclines – New Jersey has dropped over 18 percent – in the last 12 months.</p

Black Knight provides a more in-depthrnreview its data in its monthly MortgagernMonitor report.  The next edition ofrnthis report will be released by September 8.

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