‘New’ Severe Delinquencies Tumble to 2009 Level

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Black Knight Financial Services Severely Delinquent Mortgages 2015-11-12 Brian Honea The percentage of “new” severe delinquent residential mortgages reported for September 2015—that is, the number of severely delinquent loans that were current six months ago—was the lowest of any September since 2009, according to Black Knight Financial Services.The share of new severely delinquent borrowers in September was reported at 0.66 percent, a number that has been steadily declining since hitting its September peak of 2.81 percent six years ago, according to Black Knight. The data shows a seasonal effect to new severe delinquencies; the rate has peaked in every September or October for the last six years.The number of new severe delinquencies has dropped from an average of three in every 100, its peak reached back in 2009, down to seven for every 1,000 in September of 2015. According to Black Knight, there is a definite seasonal effect to new severe delinquencies; the rate has peaked in every September or October for the last six years.Mortgages that originated during the bubble years of 2005 to 2008 accounted for the highest percentage of new serious delinquencies; they make up 45 percent of new serious delinquent mortgages even though they account for only 17 percent of total loans in the mortgage universe.Meanwhile, mortgages that originated during the post-crisis years (2009 to 2015) make up 68 percent of all mortgages but account for just 34 percent of new severe delinquencies, Black Knight reported.“These post-crisis vintages are seeing new seriously delinquent loans rates of half the national average,” the report stated.The new severe delinquency rate on mortgages with a second lien was more than twice those without a second lien in September (1.04 percent compared to 0.48 percent), which has been the case for about the last two years, according to Black Knight. During this period, mortgages with a second lien have seen “increased seasonality in new severely delinquent loan rates.” November 12, 2015 1,273 Views  Print This Post Share Save Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Data Provider Black Knight to Acquire Top of Mind 2 days ago ‘New’ Severe Delinquencies Tumble to 2009 Level Previous: Mixed Economic, Housing Data Cast Doubt on Fed Liftoff Next: DS News Webcast: Friday 11/13/2015 Sign up for DS News Daily center_img The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / ‘New’ Severe Delinquencies Tumble to 2009 Level The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles Tagged with: Black Knight Financial Services Severely Delinquent Mortgages Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Market Studies, News Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Brian Honea Subscribelast_img read more

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