DS News

36 THE LEADER IN DEFAULT SERVICING NEWS Help shape the next issue of DS News. Drop us a line at Editor@DSNews.com. DELINQUENCIES FORECASTED TO RISE IN COMING MONTHS November could bring a new outlook to regional delinquency rates due to the aftermath of recent storms. Nationally, however, they remained relatively unchanged in August, according to Black Knight's August 2017 Mortgage Data First Look. e effects of Hurricane Harvey are already being felt in areas of Houston, as delinquency rates rose 16 percent month-over-month. According to the report, 6,700 new delinquencies 30 days overdue were recorded in August, and an additional 1,000 borrowers missed an additional payment during the month, placing them in the 60-plus day threshold. Black Knight predicts that the true fallout of Hurricane Harvey on the housing market will likely be realized in September 2017's numbers. ere was a total of 54,700 new foreclosure starts in the month of August, which is an increase month-over-month of 2.63 percent, but a year-over-year decrease of 20.49 percent. e number of total national properties 30 or more days delinquent but not yet in foreclosure amounted to 2.003 million, and an increase of 17,000 from the month prior but a decrease of 148,000 year-over-year. e number of properties 90 days past due yet still not in foreclosure also declined year-over-year by 112,000 but rose month-over-month by 2,000 to a figure of 557,000. e only figure reported by Black Knight that decreased in both metrics was the number of foreclosed properties in the industry's pre- sale inventory, dropping 13,000 from July to 385,000. at is a difference of 142,000 a year ago. As of August 2017, the top five states by noncurrent percentages were Mississippi at 10.47 percent, Louisiana at 8.82 percent, Alabama at 7.22 percent, West Virginia at 6.95 percent, and Maine at 6.52 percent. e bottom five states by noncurrent percentages were Montana at 2.69 percent, Oregon at 2.58 percent, Minnesota at 2.53 percent, North Dakota at 2.31 percent, and Colorado at 2.11 percent. DOES OWNING A HOME AFFECT FINANCIAL STABILITY? e Consumer Financial Protection Bureau (CFPB) released its report on financial well- being in America, showing most Americans are generally satisfied with their household situation. According to the report, average adults who answered to be "very satisfied" in the place they live have a higher level of financial stability (10 points by the metrics of the data, at 60,) than those that report being "less than very satisfied," which stood at 50 points. e report, notes, however, that this could be a chicken-or-egg situation: "It is possible that being satisfied with one's residence influences financial well-being, but it is also possible that individuals with greater financial resources and higher financial well-being have greater flexibility to select housing that meets their needs." However, the report makes clear that homeowners feel they have a higher financial well-being than those that rent, or those that identify with neither group, although the report remains hesitant to attribute cause and effect: "Again, this finding does not necessarily mean that homeownership causes higher levels of financial well-being. While it is possible that owning a home enhances financial well-being, it is also possible that those who are able to purchase a home are in a stronger financial position (i.e., have higher levels of income and savings) than those who are not and that those factors are associated with higher levels of financial well-being."

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