Mortgage

Serious delinquencies dropped by 80,000 in November

Serious delinquencies dropped by 80,000 in November
Written by Publishing Team

Mortgage loans past due by more than 90 days fell last month, but the number of loans in this category was still twice as high as it was just before the pandemic.

Serious delinquencies in November are down 80,000 from October, but there are still more than 1 million, according to Black Knight’s First Look report. Only 409K loans were seriously overdue but no foreclosures at the end of February 2020.

The relative numbers of mortgages that have traditionally been on the verge of foreclosure in the absence of pandemic mandates, and the pace at which they are declining, suggests that a full recovery could take months but potentially less than a year. Serious delinquency cases are down 1.17 million from 12 months ago.

Improvement in delinquencies in general appears to be continuing apace, according to Black Knight. The national delinquency rate, including payments that are 30 days or more late, decreased 4.1% in November, matching the average rate of decline over the past 18 months.

But what happens next largely depends on how or whether the rise Variable Omicronfederation monetary policy, and the status of temporary relief programs being phased out or Developed Affect the economy and loan performance.

Plans that provide federally authorized forbearance on loan payments to borrowers experiencing pandemic-related difficulties continued to finish in large numbers through November, with more than 800,000 exits in the past two months combined, according to Black Knight.

“Given the size of this population, both measures of critical delay and foreclosure require close attention as we enter 2022,” the data and technology resource said in its report.

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