Black Knight: Prepayment Speeds Down Nearly 30% In January

Posted by Patrick Barnard on February 23, 2017 No Comments
Categories : Mortgage Servicing

Mortgage delinquencies (30 days or more past due but not in foreclosure) were at a rate of about 4.25% in January – a decrease of 3.85% compared with December and a decrease of 16.57% compared with January 2016, according to Black Knight Financial Services’ First Look report.

As of the end of January, there were about 2.162 million properties 30 days or more past due – a decrease of about 86,000 compared with the end of December and a decrease of about 413,000 compared with January 2016.

There were about 664,000 serious delinquencies (90 days or more past due but not in foreclosure) in January – down 18,000 from December and down about 591,000 compared with a year earlier.

Black Knight says the overall delinquency rate is the lowest it has been since August 2006, immediately following the pre-crisis national peak in home prices.

The presale foreclosure inventory rate, which is the percentage of homes with mortgages that are in some stage of foreclosure, stood at about 0.94%, as of the end of the month – that’s down 0.46% compared with the previous month and down 27.57% compared with a year earlier.

There were about 481,000 homes in the presale foreclosure inventory, as of the end of the month – down about 2,000 compared with December and down about 178,000 compared with January 2016.

In keeping with the typical seasonal pattern – but also due to rising interest rates – prepayments slowed significantly in January. The monthly prepayment rate was 0.95%, down 29.83% compared with the previous month but up 17.15% compared with a year earlier.

Black Knight says prepayment speeds – historically a good indicator of refinance activity – were at the lowest level since February 2016.

There were about 70,400 foreclosure starts in January – and although that was an increase of 17.92% compared with December, it was down 2.09% compared with January 2016.

It was the highest number of foreclosure starts since March 2016, Black Knight says.

Register here to receive our Latest Headlines email newsletter




Leave a Comment