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Delinquencies Spiked in November; Annual Trend Continues Lower

by devteam January 7th, 2015 | Share

Black Knight Financial Services, a division of FidelityrnNational Financial, has released its “first look” at November mortgagernperformance data.  The company provides thisrnmonthly preview of the data, one or more aspect of which is featured in greaterrndetail in the subsequent publication of its MortgagernMonitor report.</p

The U.S. delinquency rate accelerated in November, risingrn11.82 percent from October to 6.08 percent, the first time the national raternhas been above 6 percent since last February. rn The increase represents a gain ofrn329,000 mortgages that are 30 days or more past due but not yet in foreclosurernto a total of 3.09 million.   Despite the monthly increase the nationalrndelinquency rate is still 5.69 percent below the rate in November 2013; 153,000rnfewer delinquent mortgages.</p

Of that total Black Knight counts 1.16 million as seriouslyrndelinquent, that is 90 or more days past due but not in foreclosure.  This is 62,000 more seriously delinquentrnloans than the company reported in October but the number is down 120,000 fromrnthe previous November.</p

The pre-sale or foreclosure inventory now stands at 829,000rnproperties or 1.63 percent of all mortgaged homes, a month-over-month change ofrn-3.50 percent or 29,000 fewer homes.  Onrnan annual basis the inventory has fallen by 427,000 units or 34.70 percent andrnis at its lowest level since January 2008.</p

There were 73,900 homes that entered the foreclosure processrnduring the month, down 9.21 percent from October and 29.55 percentrnyear-over-year.  The November foreclosurernstarts were the fewest in any month since May 2006.</p

Black Knight says the total number of distressed homes, pastrndue and/or in foreclosure was 3.92 million at the end of November, a monthlyrnincrease of 300,000 but 580,000 fewer than in November 2013.  Foreclosure sales during the monthrnrepresented 1.49 percent of seriously delinquent mortgages, a 26.51 percentrndecrease from October and 5.69 from a year earlier.</p

Mississippi has the highest percentage of delinquentrnmortgages at 14.88 percent followed in order by New Jersey, Louisiana, NewrnYork, and Florida.  The states showingrnthe greatest deterioration in mortgage performance over the last six months arernWyoming where non-current mortgages have increased by nearly 15 percent followedrndistantly by Arizona, Kansas, Louisiana, and Texas.  Increases in non-current mortgages in thosernstates over the last six months ranged from 10.90 to 9.11 percent.  </p

Black Knight also notes that the monthly mortgage prepaymentrnrate decreased by 6.62 percent from October to November and by 3.68 percent comparedrnto the previous year.  The rate was 0.91rnpercent at the end of November.</p

Black Knight derives its statistics from its loan-levelrndatabase of mortgage assets which represents approximately two-thirds of thernoverall market.  The Mortgage Monitor will be released on January 12.

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About the Author

devteam

Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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