Real estate report indicates that overdue mortgages fell to the third consecutive record low in May

Black Knight, the data and analytics company for the real estate and mortgage lending and servicing industries, notes that in a “first look” at month-end mortgage yield statistics for May 2022, it found that the rate of National delinquencies fell five basis points from April to 2.75% in May, continuing the downward trend in overall delinquencies from the previous two months and marking another new low.

The firm notes that following typical seasonal patterns, the Early-stage delinquencies (borrowers who have missed a single mortgage payment) increased marginally (+0.2%) Month after month.

The report indicates that although the Serious delinquencies saw a strong improvement, falling 7% from Aprilthe population of such loans (those 90 or more days past due but not yet foreclosed) remains 45% above pre-pandemic levels.

Black Knight explains that despite high levels of serious delinquency, foreclosure starts fell 12% from April and continue to remain well below pre-pandemic levels, while active foreclosures increased slightly.

According to the information, prepaid activity fell 11.1% from the previous month and is now down 59.1% year on year after year due to sharply higher interest rates.

Total US Loan Delinquency Rate (loans 30 or more days past due, but not in foreclosure): 2.75%
Month-on-month variation: -1.93%
Interanual variation: -41.96%

Total US foreclosure initiations: 18,800
Month-to-month variation: -12.15%
Year over year variation: 394.74%

Monthly prepayment rate (SMM): 0.88%
Month-on-month variation: -11.13%
Interanual variation: -59.16%

Number of properties that are 30 or more days past due, but not in foreclosure: 1,461,000
Change month to month: -35,000
Year to year change: -1,050,000

Number of properties that are 90 or more days past duebut are not in foreclosure: 595,000
Change month over month: -45,000
Year over year change: -1,074,000

Number of properties that are 30 or more days past due or foreclosed: 1,635,000
Change month to month: -34,000
Year to year change: -1,024,000

The company said it will provide a deeper review of this data in its monthly Mortgage Monitor report by July 6.

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