Early-Stage Delinquencies Push Up National Delinquency Rate

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

According to Black Knight, the national delinquency rate rose to 2.89% in June. The delinquency rate was 2.84% in June, 2.75% in May, 2.80% in April, and 2.84% in March. This number was driven by a 4% increase in early-stage delinquencies; this number is also 14 basis points higher than the record low recorded by this report set in May 2022. 

All-in-all, serious delinquencies, or loans more than 90 past due but not yet in foreclosure, pulled back slightly in July after worsening for the first time in 22 months in June. Seriously delinquent loan numbers have dropped since March from 104,000 to 58,000 in July. 

Foreclosure starts also retreated 25% from the previous months for a total of about 17.7k starts, 55% below pre-pandemic level, now equivalent to just 3% of loans 90 days past due. 

Though still up from record lows that came from widespread moratoriums and forbearance protections last year, the number of loans in active foreclosure declined slightly by 6K in July. 

Breaking down the number: 

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 2.89% 

• Month-over-month change: 1.98% 
• Year-over-year change: -30.17% 

  

Total U.S. foreclosure pre-sale inventory rate: 0.35% 

• Month-over-month change: -2.95% 
• Year-over-year change: 31.47% 

  

Total U.S. foreclosure starts: 17,700 

• Month-over-month change: -25.63% 
• Year-over-year change: 321.43% 

  

Monthly prepayment rate (SMM): 0.66% 

• Month-over-month change: -18.37% 
• Year-over-year change: -67.35% 

  

Foreclosure sales as % of 90+: 0.52% 

• Month-over-month change: -1.35% 
• Year-over-year change: 200.75% 

  

Number of properties that are 30 or more days past due, but not in foreclosure: 1,543,000 

• Month-over-month change: 32,000 
• Year-over-year change: -663,000 

  

Number of properties that are 90 or more days past due, but not in foreclosure: 594,000 

• Month-over-month change: -5,000 
• Year-over-year change: -853,000 

  

Number of properties in foreclosure pre-sale inventory: 184,000 

• Month-over-month change: -6,000 
• Year-over-year change: 44,000 

  

Number of properties that are 30 or more days past due or in foreclosure: 1,728,000 

• Month-over-month change: 28,000 
• Year-over-year change: -618,000 

  

Top 5 States by Non-Current Percentage 

Mississippi: 6.44 % 

Louisiana: 5.75 % 

Oklahoma: 4.89 % 

Alabama: 4.88 % 

West Virginia: 4.74 % 

  

Bottom 5 States by Non-Current Percentage 

Oregon: 2.02% 

Colorado: 1.90% 

California: 1.83% 

Idaho: 1.74% 

Washington: 1.71% 

  

Top 5 States by 90+ Days Delinquent Percentage 

Mississippi: 2.43% 

Louisiana: 2.08% 

Alabama: 1.79% 

Alaska: 1.70% 

Maryland: 1.57% 

 

Top 5 States by 6-Month Change in Non-Current Percentage 

Hawaii: -27.37% 

Vermont: -18.56% 

New York: -18.14% 

Nevada: -17.11% 

Louisiana: -16.39% 

  

Bottom 5 States by 6-Month Change in Non-Current Percentage 

Iowa: 0.66% 

Kansas: -1.16% 

Oklahoma: -2.75% 

North Dakota: -2.94% 

Alaska: -3.83%