October’s results for loan performance is all about good news! Though the progress is slow, it is still a progress after all. As they say, slow and steady wins the race.
Black Knight once again shared its data analyst’s monthly loan-performance report for October and it shows continued improvement for mortgage delinquencies. October closed its mortgage delinquencies at 3.3 percent, the lowest level since March (6.44 percent).
Every month, there are about 105,000 fewer past-due mortgages.
Despite five consecutive months of improvement, there are still more than 3.4 million delinquent mortgages, nearly twice as many as there were entering the year
As for the serious delinquencies, loans that are 90 or more days past due have improved as well, however, there are still more than 5 times as many as there were before the pandemic. There are roughly 1.8 million more serious delinquencies than at the start of 2020. Maybe slow but still good progress.
The what-could-have-been a wave of foreclosures due to COVID-19 are kept at record lows, all thanks for the foreclosure moratoriums. There were just 4,700 foreclosure starts in October, a nearly 90% year-over-year decline. And the number of loans in active foreclosure hit yet another record low at 178,000.
Finally, record-low interest rates pushed prepayment activity higher. October’s prepayment rate of 3.17% sets the highest single-month mark in more than 16 years.
Homeowners have successfully got back on track with their monthly payments with the help of companies like Analytics Before Foreclosure who help borrowers with actionable intelligence for their homes.
