Black Knight: Past-Due Mortgages Fall to Third Consecutive Record Low in May

Black Knight's First Look reports the percent of loans delinquent decreased 1.9% in May compared to April and decreased 42% year-over-year.

Black Knight also reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) was 2.75% in May, down from 2.80% in April.

The percent of loans in the foreclosure process increased in May to 0.50%, from 0.46% in April. This is increasing from very low levels due to the foreclosure moratoriums.

The number of delinquent properties, but not in foreclosure, is down 1,050,000 properties year-over-year, and the number of properties in the foreclosure process is up 26,000 properties year-over-year.

The national delinquency rate fell five basis points from April to 2.75% in May, continuing the downward trend in overall delinquencies of the prior two months and marking yet another new low
Following typical seasonal patterns, early-stage delinquencies – borrowers who have missed a single mortgage payment – edged marginally higher (+0.2%) month over month
While serious delinquencies saw strong improvement, falling 7% from April, the population of such loans (those 90 or more days past due but not yet in foreclosure) remains 45% above pre-pandemic levels
Despite elevated serious delinquency levels, foreclosure starts dropped 12% from April and continue to hold well below pre-pandemic levels while active foreclosures edged slightly higher
Prepayment activity fell by 11.1% from the prior month and is now down 59.1% year over year on sharply higher interest rates