Thursday, March 28, 2024 | The Latest Buzz for the Appraisal Industry

Mortgage Delinquencies Fell in December as Moratorium Storm Looms on Horizon

Mortgage delinquencies continued to fall in December, Black Knight’s First Look report shows, but mortgage performance is far from what is was pre-pandemic.

What’s more, COVID-19-related forbearance plans and moratoriums are currently masking the pandemic’s true impact on foreclosures and distressed sales.

Roughly 6.08% of all loans where in some stage of delinquency, Black Knight’s data show. That’s down 3.9% compared with November but up 80% when compared with December 2019.

As of the end of the month, about 3.25 million loans were 30 days or more past due, a decrease of about 130,000 compared with November but up about 1.4 million compared with December 2019.

About 2.1 million loans were seriously delinquent, or 90 days or more past due, a decrease of about 47,000 compared with the previous month but up about 1.7 million compared with a year earlier.

The pre-sale foreclosure inventory rate was 0.33%, an increase of 1.3% compared with November but down 27.7% compared with December 2019.

As of the end of the month, there were about 178,000 homes in the pre-sale inventory, an increase of about 2,000 compared with the previous month but down a bout 67,000 compared with a year earlier.

There were about 7,100 foreclosure starts in December – an increase of 61.3% compared with November but down 82% compared with December 2019. 

The monthly pre-payment rate stood at 3.15%, an increase of 11.73% compared with the previous month and an increase of 112% compared with a year earlier.

Black Knight notes that foreclosure starts and distressed sales have hit record lows as moratoriums and forbearance plans continue to protect distressed homeowners in the wake of the pandemic.

The post Mortgage Delinquencies Fell in December as Moratorium Storm Looms on Horizon appeared first on MortgageOrb.

This post was originally published on this site

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