Black Knight's First Look: Mortgage Delinquencies Hit Yet Another Record Low in April, Driven by Continued Improvement Among Seriously Past-Due Loans

Rhea-AI Summary

Black Knight, Inc. (NYSE: BKI) reported a national delinquency rate of 2.80% for April, marking a 4 basis points decrease from March and a 40% decline year-over-year, showcasing a continual recovery in the mortgage market. Notably, while serious delinquencies have decreased, they remain over 55% above pre-pandemic levels. Foreclosure starts fell by 12% month-over-month, with active foreclosure slightly rising. However, prepayment activity plummeted by 19.1% from March due to rising interest rates.

Positive

• National delinquency rate decreased to 2.80%, a record low.
• Overall delinquencies are down nearly 40% compared to last year.
• Serious delinquencies have shown consistent improvement over 14 months.

Negative

• Serious delinquencies still more than 55% above pre-pandemic levels.
• Active foreclosures edged slightly higher despite a drop in foreclosure starts.
• Prepayment activity fell by 19.1% month-over-month.

• The national delinquency rate fell to 2.80% in April, down four basis points from March, hitting a new record low for the second consecutive month
• Overall delinquencies are down nearly 40% from last year as the mortgage market continues to recover from pandemic-related impacts
• The number of borrowers who are a single payment past due increased 7.9% month-over-month, following typical seasonal patterns
• This was offset by strong improvement among borrowers who are three or more payments past due – with volumes falling by 8% month-over-month
• Though such serious delinquencies have fallen between 6%-12% in each of the past 14 months, volumes remain more than 55% above pre-pandemic levels
• Despite still-elevated serious delinquency levels, foreclosure starts dropped nearly 12% from March and are holding well below pre-pandemic levels – though active foreclosures edged slightly higher
• Prepayment activity fell by 19.1% from March and 61.8% from a year ago as interest rates continued their sharp ascent in April

JACKSONVILLE, Fla., May 20, 2022 /PRNewswire/ -- Black Knight, Inc. (NYSE: BKI) reports the following "first look" at April 2022 month-end mortgage performance statistics derived from its loan-level database representing the majority of the national mortgage market.         

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 2.80%
Month-over-month change: -1.31%
Year-over-year change: -39.93%

Total U.S. foreclosure pre-sale inventory rate: 0.32%
Month-over-month change: 2.31%
Year-over-year change: 13.48%

Total U.S. foreclosure starts: 21,400        
Month-over-month change: -11.93%
Year-over-year change: 478.38%

Monthly prepayment rate (SMM): 0.99%
Month-over-month change: -19.10%
Year-over-year change: -61.80%

Foreclosure sales as % of 90+: 0.46%
Month-over-month change: 8.58%
Year-over-year change: 228.58%

Number of properties that are 30 or more days past due, but not in foreclosure: 1,496,000
Month-over-month change: -17,000
Year-over-year change: -1,004,000

Number of properties that are 90 or more days past due, but not in foreclosure: 640,000
Month-over-month change: -54,000
Year-over-year change: -1,128,000

Number of properties in foreclosure pre-sale inventory: 173,000
Month-over-month change: 4,000
Year-over-year change: 20,000

Number of properties that are 30 or more days past due or in foreclosure: 1,669,000
Month-over-month change: -13,000
Year-over-year change: -984,000

Top 5 States by Non-Current* Percentage
Mississippi:	6.13%
Louisiana:	5.61%
Alabama:	4.54%
Oklahoma:	4.50%
West Virginia:	4.32%

 

Bottom 5 States by Non-Current* Percentage
Montana:	1.94%
California:	1.88%
Colorado:	1.77%
Idaho:	1.70%
Washington:	1.67%

 

Top 5 States by 90+ Days Delinquent Percentage
Mississippi:	2.55%
Louisiana:	2.37%
Alabama:	1.77%
Maryland:	1.70%
Arkansas:	1.70%

 

Top 5 States by 6-Month Change in Non-Current* Percentage
Louisiana:	-35.76%
Nevada:	-29.36%
District of Columbia:	-27.90%
Washington:	-27.60%
New Jersey:	-27.13%

 

Top 5 States by 6-Month Change in Non-Current* Percentage
North Dakota:	-10.13%
Maine:	-12.31%
Michigan:	-14.52%
Alaska:	-15.61%
Iowa:	-15.71%

 

*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.
Notes:

1. Totals are extrapolated based on Black Knight's loan-level database of mortgage assets.
2. All whole numbers are rounded to the nearest thousand, except foreclosure starts, which are rounded to the nearest hundred.

For a more detailed view of this month's "first look" data, please visit the Black Knight newsroom. The company will provide a more in-depth review of this data in its monthly Mortgage Monitor report, which includes an analysis of data supplemented by detailed charts and graphs that reflect trend and point-in-time observations. The Mortgage Monitor report will be available online by June 6, 2022. For more information about gaining access to Black Knight's loan-level database, please send an email to Mortgage.Monitor@bkfs.com.

About Black Knight

Black Knight, Inc. (NYSE: BKI) is an award-winning software, data and analytics company that drives innovation in the mortgage lending and servicing and real estate industries, as well as the capital and secondary markets. Businesses leverage our robust, integrated solutions across the entire homeownership life cycle to help retain existing customers, gain new customers, mitigate risk and operate more effectively.

Our clients rely on our proven, comprehensive, scalable products and our unwavering commitment to delivering superior client support to achieve their strategic goals and better serve their customers. For more information on Black Knight, please visit www.blackknightinc.com.

 

For more information:
Michelle Kersch	Mitch Cohen
904.854.5043	704.890.8158
michelle.kersch@bkfs.com	mitch.cohen@bkfs.com

 

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SOURCE Black Knight, Inc.

FAQ

What is the delinquency rate reported by Black Knight for April 2022?

The national delinquency rate reported by Black Knight for April 2022 is 2.80%.

How much have overall delinquencies decreased compared to last year?

Overall delinquencies have decreased nearly 40% compared to last year.

What was the change in foreclosure starts in April 2022?

Foreclosure starts dropped nearly 12% from March 2022.

How has prepayment activity changed in April 2022?

Prepayment activity fell by 19.1% from March 2022.

What is the significance of the serious delinquency level reported?

Serious delinquencies remain over 55% above pre-pandemic levels despite recent improvements.