by Calculated Risk on 3/24/2022 11:19:00 AM

Note: At the beginning of the pandemic, the delinquency rate increased sharply. Loans in forbearance are counted as delinquent in this survey, but those loans are not reported as delinquent to the credit bureaus.  Foreclosures are starting to increase following the end of the moratorium, but are at very low levels (see: Delinquencies, Foreclosures and REO) for a discussion of rising foreclosures, and why this isn't a concern)

From Black Knight: February Uptick in Early-Stage Delinquencies Drives First Increase in Past- Due Mortgages in Nine Months; Foreclosure Starts Fall 24% Following January Spike

• Though past-due loans edged higher (+1.8%) in February, the national delinquency rate remains near pre-pandemic levels heading into March, a month known for strong seasonal performance improvements

• February’s increase was driven by a rise of 97,000 in early-stage delinquencies – which nevertheless remain well below pre-pandemic levels

• At the same time, the number of seriously delinquent mortgages (those 90 or more days past due) fell by 72,000 as borrowers leaving forbearance plans continue to return to making payments

• After seeing a sizable spike in January, foreclosure starts pulled back by 24%, with the month’s 25,000 starts 25% below February 2020 levels, prior to the onset of pandemic-related economic stress

• Likewise, despite a 39,000 increase in the number of loans in active foreclosure, the population remains 32% below February 2020 levels

• Prepayment activity – as reflected in single-month mortality – dropped another 11% in February, hitting a nearly three-year low as rising rates continue to impact refinance volumes
emphasis added

According to Black Knight's First Look report, the percent of loans delinquent increased 1.8% in February compared to January and decreased 44% year-over-year.

The percent of loans in the foreclosure process increased 9% in February and were down 3% 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 3.36% in February, down from 3.30% in January.

The percent of loans in the foreclosure process increased in February to 0.31%, from 0.28% in January.

The number of delinquent properties, but not in foreclosure, is down 1,403,000 properties year-over-year, and the number of properties in the foreclosure process is down 6,000 properties year-over-year.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
	Feb  2022	Jan 2022	Feb 2021	Feb 2020
Delinquent	3.36%	3.30%	6.00%	3.28%
In Foreclosure	0.31%	0.28%	0.32%	0.45%
Number of properties:
Number of properties that are delinquent, but not in foreclosure:	1,783,000	1,758,000	3,186,000	1,737,000
Number of properties in foreclosure pre-sale inventory:	162,000	149,000	168,000	239,000
Total Properties	1,946,000	1,907,000	3,354,000	1,976,000