With the release of the latest Black Knight Mortgage Monitor Report, DS News sat down with Black Knight Financial Services’ Ben Graboske to discuss current foreclosure and delinquency trends found in the monitor and discover the factors behind the full monthly recovery in the national delinquency rate from the previous month.
Why is it unusual to see full recovery in the national delinquency rate in a month following a Sunday month-end?
It's typical for there to be a sizable significant partial recovery in the month following the month end on a Sunday, however, it is important to note that our borrowers impacted by Sunday month-ends are already making their payments towards the end of the month to begin with because they're due at the beginning of the month, and so if they're near the end then they're probably more on the distressed end of the spectrum. That suggests that these are borrowers who are struggling to meet their obligations and it just may take them a little bit longer to get back on track.
What factors contributed to August's delinquency rate rebound?
In addition to the typical rebound seen in the month following a Sunday month-end, we also see seasonal month-over-month decline in delinquency rates in the month of August. There's just a seasonal, natural trend in August where there's an improvement in delinquencies. There's the combination of coming back from the July spike with the normal seasonality and if you look at March through August and you take July out of the equation because it obviously is a spike, August is very much in line with those five months without July.
What will the next month’s data reveal in Black Knight’s First Look on Tuesday, October 25?