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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Source-eldiariony.com