21
MORTGAGE
DELINQUENCIES
EXPERIENCE
HISTORIC SPIKE
e nationwide delinquency rate hit its
highest single-month increase in history in
April, according to the First Look at April
mortgage performance data from Black
Knight. According to Black Knight, some 3.6
million homeowners were past due on their
mortgages as of the end of April (including
the roughly 211,000 who were in active
foreclosure)—the highest number since
January 2015.
is is an increase of 1.6 million since
March, the largest single-month jump on
record. is number includes homeowners past
due on mortgage payments who are not in
forbearance, as well as those currently enrolled
in forbearance plans and who did not make an
April mortgage payment.
e national delinquency rate nearly
doubled to 6.45% from March, the largest
single-month increase ever recorded, and
nearly three times the previous record for
a single month from back in late 2008.
Delinquency increases in Nevada (+5.2%),
New Jersey (+5.1%), and New York (+4.9%)
led the states, while Miami (+7.2%), Las Vegas
(+6.2%), and New York City (+5.4%) topped
the 100 largest metro areas.
Despite the delinquency increase, both
foreclosure starts and foreclosure sales hit
record lows in April as moratoriums and
forbearances halted foreclosure activity across
the country.
Close to 9% of all active mortgage loans
are in forbearance as of May 15, according to
the latest data from Black Knight's McDash
Flash.
Looking ahead, Black Knight estimates
there could be 4.9 million loans in forbearance
by the end of this month if the number of
loans entering forbearance declines by 10%
per day moving forward. By the end of June,
there would be 5 million loans in forbearance,
accounting for 9.4% of all active mortgages in
this scenario.
Under a "more pessimistic scenario," with
the two-week average going forward and
a 10% decline beginning in mid-June, 5.4
million loans would be in forbearance at the
end of this month, according to Black Knight's
calculations. is would account for 10.1% of
all active mortgage loans.
