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Mortgage Delinquencies Experience Historic Spike

foreclosureThe nationwide delinquency rate hit its highest single-month increase in history in April, according to the First Look at April mortgage performance data from Black Knight. According to Black Knight, some 3.6 million homeowners were past due on their mortgages as of the end of April (including the roughly 211,000 who were in active foreclosure)—the highest number since January 2015.

This is an increase of 1.6 million since March, the largest single-month jump on record. This number includes homeowners past due on mortgage payments who are not in forbearance, as well as those currently enrolled in forbearance plans and who did not make an April mortgage payment.

The national delinquency rate nearly doubled to 6.45% from March, the largest single-month increase ever recorded, and nearly three times the previous record for a single month from back in late 2008. Delinquency increases in Nevada (+5.2%), New Jersey (+5.1%), and New York (+4.9%) led the states, while Miami (+7.2%), Las Vegas (+6.2%), and New York City (+5.4%) topped the 100 largest metro areas.

Despite the delinquency increase, both foreclosure starts and foreclosure sales hit record lows in April as moratoriums and forbearances halted foreclosure activity across the country.

Close to 9% of all active mortgage loans are in forbearance as of this week, according to the latest data from Black Knight’s McDash Flash.

Looking ahead, Black Knight estimates there could be 4.9 million loans in forbearance by the end of this month if the number of loans entering forbearance declines by 10% per day moving forward. By the end of June, there would be 5 million loans in forbearance, accounting for 9.4% of all active mortgages in this scenario.

Under a “more pessimistic scenario,” with the two-week average going forward and a 10% decline beginning in mid-June, 5.4 million loans would be in forbearance at the end of this month, according to Black Knight’s calculations. This would account for 10.1% of all active mortgage loans.

About Author: Seth Welborn

Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer.
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