Major Delinquency Metrics Turned Higher in July

Mortgage delinquencies jumped in August, a 5 percentrnincrease which sent the rate to its highest level since February.   At the same time, foreclosure starts declinedrnfor the first time in five months, dropping 10 percent from July and 24 percentrnfrom August 2013.  There were 81,600 foreclosuresrninitiated during the month.</p

These were two of the headlined findings containedrnin the preview released today from Black Knight Financial Services’ Mortgage Monitor report.  The complete report will be released duringrnthe first week of October.</p

The 4.68 increase in the delinquency rate brought thernnumber of properties that are 30 or more days past due but not in foreclosurernup to 3.0 million, an increase of 146,000. rnThe rate at the end of August was 5.90 percent which, despite thernincrease is still 4.80 percent below the rate in August 2013.</p

Of the 3 million delinquent loans 1.14 million are seriouslyrnso, that is 90 or more days past due but not in foreclosure.  This was 7,000 more loans than in July butrn145,000 fewer than a year earlier.</p

The foreclosure pre-sale inventory, loans that arernin process of foreclosure, fell to 913,000, the lowest number since March 2008.  The inventory contracted by 22,000 loansrncompared to July and 145,000 units from August 2013.  The pre-sale inventory rate fell to 1.80rnpercent, down 2.80 percent and 32.39 percent month-over-month andrnyear-over-year respectively. </p

The total of non-current loans, those that arerneither delinquent or in foreclosure, was 3,908,000, 123,000 more than inrnJuly.  There were, however 557,000 fewerrndistressed loans than a year earlier.</p

Foreclosure sales were at a rate representing 1.72rnpercent of seriously delinquent loans. rnThis rate was down 7.09 percent from the previous month and was 35.39rnpercent lower than at the end of August 2013.</p

Core-Logic said the pre-payment rate, a number whichrnoften correlates with refinancing, was 0.96 percent, a drop of 8.30 percentrnfrom July and 31.37 percent for the year.  The decrease followed five straight months ofrnincreases in the rate.</p

Statesrnwith the highest percentage of non-current loans were Mississippi at 14.68rnpercent followed by New Jersey (12.59 percent), Louisiana (11.37 percent), NewrnYork (11.10 percent), and Florida (10.98 percent.)  All five of those states have a lower raternthan one year earlier although Louisiana and Mississippi are down by less thanrnone percent.  Florida has declined by 27rnpercent year-over-year, New Jersey by 13 percent, and New York by almost 9rnpercent.</p

MortgagernMonitor data is compiled by Black Knight’srnData and Analysis division and is derived from the company’s loan-levelrndatabase.  That database representsrnapproximately two-thirds of the overall mortgage market.

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