Mort­gage Delin­quen­cies Fall to a 12-Year Low

National Mortgage News - - Servicing - By Paul Cen­topani

The mort­gage delin­quency rate dropped to its low­est level in 12 years de­spite fore­clo­sure starts and ac­tive fore­clo­sures both in­creas­ing in July, ac­cord­ing to Black Knight.

Mort­gage delin­quen­cies fell by 3.35% in July from June, and now sit at 3.61%. The de­cline stemmed from those un­able to pay their loans from dam­age in­flicted by Hur­ri­canes Har­vey and Irma get­ting cured. The rate is down 7.5% year-over-year.

There are now 1.861 mil­lion prop­er­ties delin­quent on their mort­gage, down nearly 64,000 from June.

Prop­er­ties late by 90 days or more on their mort­gage pay­ment but not yet in fore­clo­sure reached its low­est post-re­ces­sion count of 528,000, which is down 20,000 from June.

There were 48,300 fore­clo­sure starts in July, up 11.03% from June’s 17-year low but down 9.38% year-over-year.

For the sec­ond time in the past three years, ac­tive fore­clo­sures had a monthly in­crease, ris­ing by 0.73%. How­ever, it re­mained be­low the 300,000 thresh­old, go­ing to 293,000 prop­er­ties from about 291,000 in June.

Tap­pable eq­uity also had a his­toric month, clear­ing $6 tril­lion for the first time ever.

“There is now $636 bil­lion more tap­pable eq­uity avail­able than at the start of 2018, and nearly three times as much com­pared to the bot­tom of the mar­ket in 2012,” Ben Gra­boske, ex­ec­u­tive vice pres­i­dent of Black Knight’s data and an­a­lyt­ics divi­sion, said in a press re­lease.

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