by Calculated Risk on 9/22/2016 07:00:00 AM

From Black Knight: Black Knight’s First Look at August 2016 Mortgage Data: Prepayments Skyrocket, Fueled by Post-‘Brexit’ Activity, Hit Highest Single-Month Rate in Over Three Years

• Monthly prepayment rate (historically a good indicator of refinance activity) increased by 32 percent month-over-month

• August’s prepayment rate of 1.67 percent is the highest Single Month Mortality (SMM) rate in over three years

• Delinquencies fully recovered from July’s spike, falling 6 percent (-135,000) from one month ago

• Inventory of loans in foreclosure has now declined for 19 consecutive months -- and 51 of the past 52 months

Note: the "spike" in delinquencies in July was seasonal.

According to Black Knight's First Look report for August, the percent of loans delinquent decreased 6.0% in August compared to July, and declined 11.4% year-over-year.

The percent of loans in the foreclosure process declined 4.3% in August and were down 29.9% 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 4.24% in August, down from 4.51% in July.

The percent of loans in the foreclosure process declined in August to 1.04%.

The number of delinquent properties, but not in foreclosure, is down 262,000 properties year-over-year, and the number of properties in the foreclosure process is down 221,000 properties year-over-year.

Black Knight will release the complete mortgage monitor for August on October 3rd.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
	Aug 2016	July 2016	Aug 2015	Aug 2014
Delinquent	4.24%	4.51%	4.87%	5.93%
In Foreclosure	1.04%	1.09%	1.48%	1.92%
Number of properties:
Number of properties that are delinquent, but not in foreclosure:	2,151,000	2,286,000	2,413,000	2,985,000
Number of properties in foreclosure pre-sale inventory:	527,000	550,000	748,000	970,000
Total Properties	2,678,000	2,836,000	3,161,000	3,955,000