Note: Loans in forbearance are counted as delinquent in this survey, but those loans are not reported as delinquent to the credit bureaus.
From Black Knight: Early-Stage Delinquencies Improve Further, While Seriously Past-Due Loans Rise; Rate of Improvement Slows
• The divergence between early-stage delinquencies and seriously past-due mortgages continues to widen as fewer delinquent loans cured to current status in August
• Overall, the national delinquency rate fell just 0.03 basis points from July after declining a combined 0.85 basis points over the prior two months, a noticeable slowing in the rate of improvement
• The share of borrowers with a single missed payment had already fallen below pre-pandemic levels; in August, the sum of all early-stage delinquencies (those 30 and 60 days past due) fell 9%, dropping below that benchmark as well
• However, the improvement in early-stage delinquencies was offset by a 5% increase in serious delinquencies – those 90 or more days past due – which have now risen in each of the past five months
• August’s rise in serious delinquencies was the mildest of those five months, suggesting that they may be nearing their peak
• While there are nearly 2 million more seriously delinquent homeowners than at pre-pandemic levels, foreclosure activity remains muted due to active forbearance plans and foreclosure moratoriums
emphasis added
According to Black Knight’s First Look report, the percent of loans delinquent decreased 0.5% in August compared to July, and increased 99% year-over-year.
The percent of loans in the foreclosure process decreased 1.4% in August and were down 27% 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 6.88% in August, down from 6.81% in July.
The percent of loans in the foreclosure process decreased slightly in August to 0.35% from 0.36% in July.
The number of delinquent properties, but not in foreclosure, is up 1,866,000 properties year-over-year, and the number of properties in the foreclosure process is down 66,000 properties year-over-year.
| Black Knight: Percent Loans Delinquent and in Foreclosure Process | ||||
|---|---|---|---|---|
| August 2020 |
July 2020 |
August 2019 |
August 2018 |
|
| Delinquent | 6.88% | 6.91% | 3.45% | 3.52% |
| In Foreclosure | 0.35% | 0.36% | 0.48% | 0.54% |
| Number of properties: | ||||
| Number of properties that are delinquent, but not in foreclosure: | 3,679,000 | 3,692,000 | 1,813,000 | 1,818,000 |
| Number of properties in foreclosure pre-sale inventory: | 187,000 | 190,000 | 253,000 | 280,000 |
| Total Properties | 3,867,000 | 3,881,000 | 2,066,000 | 2,099,000 |