Black Knight: Foreclosure Starts Fell Almost 20% In April

Posted by Patrick Barnard on May 25, 2016 No Comments
Categories : Mortgage Servicing

The mortgage delinquency rate increased to 4.24% of all homes with a mortgage in April – an increase of 3.77% compared with March but a decrease of 10.33% compared with April 2015, according to Black Knight Financial Services’ First Look report.

As of the end of the month, about 2.146 million mortgages were delinquent (30 days or more past due) – an increase of about 84,000 compared with March but a decrease of about 235,000 compared with April 2015.

Of those, about 730,000 mortgages were seriously delinquent (90 days or more past due) – a decrease of about 3,000 compared with the previous month and a decrease of about 179,000 compared with one year earlier.

There were about 58,700 foreclosure starts during the month – a decrease of 19.37% compared with March and a decrease of 16.62% compared with April 2015. It was the lowest number of foreclosure starts since April 2006, according to Black Knight’s data.

The total U.S. pre-sale foreclosure inventory rate stood at about 1.17%, a decrease of 5.87% compared with March and a decrease of 27.76% compared with April 2015.

It was the first time the foreclosure inventory dropped to below 600,000 since 2007.

Prepayment speeds, historically a good indicator of refinance activity, stood at about 1.26% in April – a decrease of 3.24% compared with March and a decrease of 7.25% compared with April 2015. This despite interest rates being near three-year lows.

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