Black Knight: Mortgage Delinquency Rate decreased in August

o The national delinquency rate fell 3.6% in August to 2.79%, just 4 basis points above May 2022’s record low

o Improvement was broad-based, with the number of borrowers a single payment past due falling by 4% and those 90 or more days delinquent down 4.5%

o After dropping steadily over recent months, cure activity also improved in August, with 62K seriously delinquent loans curing to current status, up from 58K in July

o The month’s 20.3K foreclosure starts represent a 15% jump in activity from July, but remain 44% below August 2019 levels

o Likewise, starts were initiated on 3.4% of serious delinquencies; up slightly from July but still less than half the rate seen in the years leading up to the pandemic

o Prepays (SMM) edged up 1.5% for the month, due to calendar-related effects, but are still down by 69% year-over-year as rising rates continue to put downward pressure on both purchase and refinance lending
emphasis added

The percent of loans in the foreclosure process increased in August to 0.53%, from 0.52% in July.

The number of delinquent properties, but not in foreclosure, is down 633,000 properties year-over-year, and the number of properties in the foreclosure process is up 43,000 properties year-over-year.Black Knight: Percent Loans Delinquent and in Foreclosure ProcessAugust
2022July
2022August
2021August
2020Delinquent2.79%2.89%4.00%6.88%In Foreclosure0.53%0.52%0.27%0.35%Number of properties:Number of propertiesthat are delinquent,but not in foreclosure:1,489,0001,543,0002,122,0003,679,000Number of propertiesin foreclosurepre-sale inventory:185,000184,000142,000187,000Total Properties1,674,0001,728,0002,264,0003,867,000