by Calculated Risk on 7/26/2016 08:21:00 AM

From Black Knight: Black Knight Financial Services’ First Look at June Mortgage Data: Foreclosure Starts Up for Second Consecutive Month; Prepays Rise on Historically Low Rates

• Despite June’s increase, first-time foreclosure starts in Q2 2016 were at their lowest level in over 16 years

• Prepayment speeds (historically a good indicator of refinance activity) jumped to a 12-month high, mirroring an overall rise in refinance activity driven by historically low interest rates

• Early-stage delinquencies saw a seasonal increase in June, while 90-day delinquencies and foreclosure inventories continued to decline

According to Black Knight's First Look report for June, the percent of loans delinquent increased 1.3% in June compared to May, and declined 10.0% year-over-year.

The percent of loans in the foreclosure process declined 2.6% in June and were down 29.4% over the last year.

Black Knight reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) was 4.31% in June, up from 4.25% in May.

The percent of loans in the foreclosure process declined in June to 1.10%.

The number of delinquent properties, but not in foreclosure, is down 237,000 properties year-over-year, and the number of properties in the foreclosure process is down 231,000 properties year-over-year.

Black Knight will release the complete mortgage monitor for June in early August.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
	June 2016	May 2016	June 2015	June 2014
Delinquent	4.31%	4.25%	4.79%	5.71%
In Foreclosure	1.10%	1.13%	1.56%	2.00%
Number of properties:
Number of properties that are delinquent, but not in foreclosure:	2,178,000	2,153,000	2,415,000	2,876,000
Number of properties in foreclosure pre-sale inventory:	558,000	574,000	789,000	1,006,000
Total Properties	2,736,000	2,727,000	3,204,000	3,882,000