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Delinquencies at Nine-Year High
Monday, June 22, 2020
Black Knight reports another
breathtaking increase in mortgage delinquencies in its "first look" at May loan
performance data. The rate, which soared by 90 percent in April, grew another
20.4 percent, to 7.76 percent of all active mortgages. This puts the rate,
which had been declining continually to near all-time lows before the impact of
the COVID-19 pandemic, up by 130.8 points from May 2019. This is the highest delinquency
rate since late 2011. There was a total of 4.123 million
loans that were 30 days or more past due in May, 723,000 more than in April and
2.36 million more than a year earlier. It this includes loans that were in a
forbearance plan and did not make a May payment but does not include loans in
foreclosure. Under provisions of the CARES Act, loans in forbearance that miss
payments are not reported to the credit bureaus. Black Knight notes that the May
increase was less than half the number of borrowers who transitioned from
current to non-current in April, 1.6 million.
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