From Black Knight: February Uptick in Early-Stage Delinquencies Drives First Increase in Past- Due Mortgages in Nine Months; Foreclosure Starts Fall 24% Following January Spike
• Though past-due loans edged higher (+1.8%) in February, the national delinquency rate remains near pre-pandemic levels heading into March, a month known for strong seasonal performance improvements
• February’s increase was driven by a rise of 97,000 in early-stage delinquencies – which nevertheless remain well below pre-pandemic levels
• At the same time, the number of seriously delinquent mortgages (those 90 or more days past due) fell by 72,000 as borrowers leaving forbearance plans continue to return to making payments
• After seeing a sizable spike in January, foreclosure starts pulled back by 24%, with the month’s 25,000 starts 25% below February 2020 levels, prior to the onset of pandemic-related economic stress
• Likewise, despite a 39,000 increase in the number of loans in active foreclosure, the population remains 32% below February 2020 levels
• Prepayment activity – as reflected in single-month mortality – dropped another 11% in February, hitting a nearly three-year low as rising rates continue to impact refinance volumes
emphasis added
According to Black Knight’s First Look report, the percent of loans delinquent increased 1.8% in February compared to January and decreased 44% year-over-year.
The percent of loans in the foreclosure process increased 9% in February and were down 3% 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 3.36% in February, down from 3.30% in January.
The number of delinquent properties, but not in foreclosure, is down 1,403,000 properties year-over-year, and the number of properties in the foreclosure process is down 6,000 properties year-over-year.
| Black Knight: Percent Loans Delinquent and in Foreclosure Process | ||||
|---|---|---|---|---|
| Feb 2022 |
Jan 2022 |
Feb 2021 |
Feb 2020 |
|
| Delinquent | 3.36% | 3.30% | 6.00% | 3.28% |
| In Foreclosure | 0.31% | 0.28% | 0.32% | 0.45% |
| Number of properties: | ||||
| Number of properties that are delinquent, but not in foreclosure: |
1,783,000 | 1,758,000 | 3,186,000 | 1,737,000 |
| Number of properties in foreclosure pre-sale inventory: |
162,000 | 149,000 | 168,000 | 239,000 |
| Total Properties | 1,946,000 | 1,907,000 | 3,354,000 | 1,976,000 |