Serious Delinquencies Continue to Improve in May

According to Black Knight, reversing much of April's calendar-driven spike, the national delinquency rate fell 11 basis points in May 2023 to 3.10%–the lowest reported total rate since March 2023's record low of 2.92% The number of borrowers who were a single payment past due improved by 94,000 (-9.5%), erasing nearly half of the prior month's increase.

Serious delinquencies (loans 90 or more days past due) continued to improve nationally, sliding by 18,000 (-3.7%) from April 2023’s reported total, putting the population of such loans down more than 200,000 (nearly 30%) since May of 2022

In terms of foreclosures, Black Knight reported that foreclosure starts increased to 25,400 for the month (+2.2%), remaining near April's six-month low, and 41% below the same period reported in 2019, the last comparable May before the pandemic. Foreclosure actions were started on 5.1% of serious delinquencies in May 2023, up only marginally from April, and still more than a full percentage point below the March 2020 recorded rate at the outset of the pandemic. The number of loans in active foreclosure improved by 4,000 in the month of May, and is now down 41,000 (-15%) from March 2020’s reported total, with foreclosure sales (completions) rising 5.5% from April 2023 to 6,800.

The top five states reporting the highest non-current percentage (a combination of foreclosures and delinquencies as a percentage of active loans in that state) include:

• Mississippi: 7.34%
• Louisiana: 6.78%
• Alabama: 5.33%
• West Virginia: 4.87%
• Pennsylvania: 4.84%

The five states reporting the lowest non-current percentage (a combination of foreclosures and delinquencies as a percentage of active loans in that state) include:

• Oregon: 2.09%
• Montana: 2.02%
• Idaho: 2.01%
• Colorado: 1.96%
• Washington: 1.92%

The top five states ranked by 90-plus days delinquent include:

• Mississippi: 2.21%
• Louisiana: 1.81%
• Alabama: 1.55%
• Arkansas: 1.34%
• Georgia: 1.23%

The top five states by 12-month change in non-current percentage (a combination of foreclosures and delinquencies as a percent of active loans in that state) include:

• Alaska: -24.21%
• Connecticut: -15.19%
• Vermont: -12.33%
• New York: -11.87%
• North Dakota: -10.76%

The bottom five states by 12-month change in non-current percentage current (a combination of foreclosures and delinquencies as a percent of active loans in that state) include:

• Idaho: 14.44%
• Utah: 6.09%
• Arizona: 5.84%
• Michigan: 5.62%
• Georgia: 3.35%