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Delinquency Rate Drops to Record Low

Black Knight Inc. has released a “first look” the latest iteration of its Mortgage Monitor Report for March 2022, which looks at delinquency and foreclosure rates across the U.S. 

According to Black Knight’s data, March usually sees the strongest performance of any month; delinquencies typically fall by an average of 10% during the month, but March 2022 saw an “exceptionally strong” 15.5% reduction. The national delinquency rate also dropped by more than half a percentage point in March, falling to 2.84% and shattering the previous record low of 3.22% in January 2020 

Black Knight noted that continued federal student loan deferrals, “robust” employment numbers, record numbers of refinances, and strong post-forbearance numbers all contributed to the record low delinquency rate. 

Among the data, the most improved category was among renters who were a single payment late; this category saw number improve by a margin of 20%. Serious delinquencies (90+ days past due but not in foreclosure) also fell by 12%, marking the biggest month-to-month improvement in 20 years and remains 70% above pre-pandemic levels. 

Despite elevated serious delinquencies, foreclosure starts fell by 3% from the month prior and are holding well below pre-pandemic levels. 

The number of active foreclosures edged slightly higher in March, marking the first year-over-year increase in almost 10 years, though inventories also remain well below pre-pandemic levels. 

Notable statistics from the report include: 

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 2.84% 

Month-over-month change: -15.46% 

Year-over-year change: -43.46% 

  

Total U.S. foreclosure pre-sale inventory rate: 0.32% 

Month-over-month change: 3.70% 

Year-over-year change: 3.94% 

  

Total U.S. foreclosure starts: 24,300         

Month-over-month change: -2.80% 

Year-over-year change: 386.00% 

  

Monthly prepayment rate (SMM): 1.22% 

Month-over-month change: 8.76% 

Year-over-year change: -63.54% 

  

Foreclosure sales as % of 90+: 0.42% 

Month-over-month change: 39.01% 

Year-over-year change: 172.90% 

  

Number of properties that are 30 or more days past due, but not in foreclosure: 1,513,000 

Month-over-month change: -270,000 

Year-over-year change: -1,159,000 

  

Number of properties that are 90 or more days past due, but not in foreclosure: 694,000 

Month-over-month change: -93,000 

Year-over-year change: -1,225,000 

  

Number of properties in foreclosure pre-sale inventory: 169,000 

Month-over-month change: 7,000 

Year-over-year change: 7,00 

  

Number of properties that are 30 or more days past due or in foreclosure: 1,682,000 

Month-over-month change: -264,000 

Year-over-year change: -1,152,000 

Editor's note: This data is a “first look” and is subject to change. According to Black Knight, the full findings of February’s data will be available by May 2, 2022 and will be published here. 

About Author: Kyle G. Horst

Kyle G. Horst is a reporter for DS News and MReport. A graduate of the University of Texas at Tyler, he has worked for a number of daily, weekly, and monthly publications in South Dakota and Texas. With more than 10 years of experience in community journalism, he has won a number of state, national, and international awards for his writing and photography including best newspaper design by the Associated Press Managing Editors Group and the international iPhone photographer of the year by the iPhone Photography Awards. He most recently worked as editor of Community Impact Newspaper covering a number of Dallas-Ft. Worth communities on a hyperlocal level. Contact Kyle G. at kyle.horst@thefivestar.com.
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