Marketpulse: Delinquencies Improved, But Many Past-Due Mortgages Remain

Black Knight, Inc. (NYSE:BKI) reports the following “first look” at November 2020 month-end mortgage performance statistics derived from its loan-level database representing the majority of the national mortgage market:

>> Despite seasonal headwinds, mortgage delinquencies improved for the sixth consecutive month in November 2020, falling to 6.33% from 6.44% in the month prior

>> The national delinquency rate is now down 1.5 percentage points from its peak of 7.8% in May but remains a full three percentage points (+93%) above pre-pandemic levels

>> While early-stage delinquencies – borrowers one or two payments past due – have fallen back below pre-pandemic levels, seriously past-due (90+ days) mortgages remain 1.8 million above pre-pandemic levels

>> Foreclosure activity remains muted as widespread moratoriums remain in place

>> November’s 4,400 foreclosure starts and 176,000 loans in active foreclosure are both at their lowest levels on record since Black Knight began reporting the metrics in 2000

>> Prepayments fell 11% from October’s 16-year high; however, with interest rates at record lows and refinance incentive at an all-time high, prepay activity is likely to remain elevated in the coming months