Past-Due Loans Post 1st Increase in 9 Months In February

Past-due loans edged up nearly 2% in February, the first increase in nine months, but the national delinquency rate remains near pre-pandemic levels heading into March, according to a first look at the numbers by Black Knight.

February's increase was driven by a rise of 97,000 in early-stage delinquencies, which nevertheless remain well below pre-pandemic levels, the company said.

The Jacksonville, Fla.-based company, which derives its first-look numbers from its loan-level database representing the majority of the national mortgage market, said the total U.S. loan delinquency rate (on loans 30 or more days past due, but not in foreclosure) was 3.36% for February. That was up 1.76% from January, but down more than 44% from February 2021.

The total U.S. foreclosure pre-sale inventory rate was 0.31% in February, up 9.35% from January but down 3.41% from a year earlier.

Foreclosure starts nationwide totaled 25,000, down 24% from January but up a staggering 541% from February 2021, Black Knight said.

Prepayment activity fell another 11% in February, hitting a nearly three-year low as rising rates continue to impact refinancing volumes, it said.

The company said the number of properties 30 or more days past due, but not in foreclosure, totaled 1,783,000, an increase of 25,000 properties from January but down more than 1.4 million from February of last year.

Other highlights: 

• The Top 5 states by the percentage of non-current properties are Mississippi (6.96%); Louisiana (6.80%); West Virginia (5.33%); Alabama (5.24%), and Oklahoma (5.14%).
• The Bottom 5 states by the percentage of non-current properties are Montana (2.39%); California (2.31%); Colorado (2.17%); Washington (2.03%), and Idaho (1.98%).

Note that non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.