The Data and Analytics division of Black Knight Financial Services released its latest Mortgage Monitor Report, which analyzed data as of the end of April 2014. The report found that there were roughly 2 million modified mortgages facing interest rate resets, with 40 percent of those loan modifications currently underwater. According to Black Knight, more than one in 10 of all active loans are in near negative equity positions, with 9 percent equity or less.
Black Knight also analyzed foreclosure pipelines in judicial versus non-judicial states. On average, foreclosures in judicial states take 52 months to complete, compared to the 2011 high of 118 months. By comparison, the average time to complete a foreclosure in non-judicial states in 2011 was 33 months. It was has since increased to 48—the highest point on record. Black Knight noted that seven of the top ten states for total non-current loans are judicial states.
A new survey by TD Bank revealed a growing number of homebuyers have to purchase mortgage insurance along with their home—and many aren't prepared for the additional cost. According to the bank, 37 percent of homeowners who purchased within the last decade required mortgage insurance. Currently, that number is up to 43 percent. Of those who have had to get insurance, 65 percent said the additional premium left them with a higher payment than anticipated, and 53 percent reported a negative impact from the added cost.