What foreclosure rates don’t tell you

The mortgage industry continues to publish decreasing rates of delinquency, but not all default metrics suggest a decline, leaving industry participants to wonder how long the current trend will last. Increasing delinquency numbers can be found in the yearend 2018 report by the Office of the Comptroller of the Currency (OCC) and the Mortgage Bankers Association’s (MBA) last quarterly report. Additionally, BlackKnight’s recent Mortgage Monitor June 2019 Report reflected several notable reverse trends in delinquency rates as follows:

•  The total national mortgage delinquency rate increased in June to 10.8%, becoming one of the top five monthly increases experienced in the past 10 years.
• June typically results in a seasonal increase in delinquencies; however, on average only rising by 2.5% as compared to 10.8%.
• Foreclosure starts for mortgages in June rose by 2.8%, with mortgages in active foreclosure also increasing.
• As compared to last quarter, the national default rate rose by 3%, which represents the first post financial crisis quarter-over-quarter increase.

There are a number of reasons that can be assigned to disparity in delinquency rates; however, the important issue at hand can be found in the red flag indicators that are increasing in number. Case in point, mortgage debt recently reached 2008 thresholds, consumer debt continues to rise, housing starts and appreciation remain stagnate, not to mention the possibility of a recession. Walking through times of ongoing industry volatility calls for dedicated, innovative, strategic partnerships. Hello Solutions has created a unique niche aimed at bringing together committed professionals in the areas of default litigation and default mortgage servicing. To find a partner that fits your exclusive needs, contact us at hello@hellosolutions.com and join our group of pioneering default players. Last month’s report on mortgage delinquency data published by Black Knight is available by clicking here.