Delinquency spiked in June reports Black Knight

But there is some good news on serious delinquencies

Delinquency spiked in June reports Black Knight

Two key factors conspired to push overall mortgage delinquencies higher last month.

With typical seasonal increases and the month ending on a Sunday, it was perhaps inevitable that the delinquency rate would spike.

And a first look at mortgage data from Black Knight reveals a 10.82% increase in overall delinquencies to 3.73% (0.20% below June 2018). That meant a 190,000 more mortgages that were 30+ days past due but not in active foreclosure, bringing the total to 1,950,000 loans.

However, serious delinquencies (90+ days past due but not in active foreclosure) fell to their lowest level in 12 years; 455,000, down 6,000 month-over-month and 93,000 below June 2018.

The number of homes with mortgages that were in the foreclosure pre-sale inventory was up 4,000 to 259,000.

Prepayment takes a pause

There was a surprising pause in rising levels of prepayments following 5 monthly increases. Despite the downward trend for mortgage rates prepayment activity fell 7.5%, although is up almost 20% from a year earlier.

Mississippi, Louisiana, and Alabama led the states with the highest non-current percentages while Colorado, Oregon, and Washington were the states with the lowest non-current percentages.


Image credit: Black Knight, Inc.