by Calculated Risk on 12/21/2020 10:40:00 AM

Note: Loans in forbearance are counted as delinquent in this survey, but those loans are not reported as delinquent to the credit bureaus.

From Black Knight: Black Knight: Delinquencies Improved Again in November 2020, But Nearly 2.2 Million Seriously Past-Due Mortgages Remain

• 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
emphasis added

According to Black Knight's First Look report, the percent of loans delinquent decreased 1.8% in November compared to October, and increased 79% year-over-year.

The percent of loans in the foreclosure process decreased 1.6% in November and were down 30% 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 6.33% in November, down from 6.44% in October.

The percent of loans in the foreclosure process decreased slightly in November to 0.33%, from 0.33% in October.

The number of delinquent properties, but not in foreclosure, is up 1,513,000 properties year-over-year, and the number of properties in the foreclosure process is down 72,000 properties year-over-year.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
	Nov 2020	Oct 2020	Nov 2019	Nov 2018
Delinquent	6.33%	6.44%	3.53%	3.71%
In Foreclosure	0.33%	0.33%	0.47%	0.52%
Number of properties:
Number of properties that are delinquent, but not in foreclosure:	3,381,000	3,437,000	1,868,000	1,925,000
Number of properties in foreclosure pre-sale inventory:	176,000	178,000	248,000	268,000
Total Properties	3,557,000	3,616,000	2,116,000	2,193,000