Despite seeing a slight month-over-month increase, the national delinquency rate on residential single-family homes experienced its largest decline in nearly four years, according to Black Knight Financial Services' First Look at Mortgage Data for August 2015 released today. The delinquency rate, which includes residential homes that are 30 days or more overdue on mortgage payments but not in foreclosure, tumbled by 18 percent year-over-year in August down to 4 point 83 percent—the largest over-the-year decline since May 2011.
That 4 point 83 percent of properties in delinquency calculates to about 2 point 45 million mortgages nationwide, and the over-the-year decline represents about 548 thousand properties. Non-current inventory, which includes all properties with loans 30 days or more overdue or in foreclosure, was down by 766 thousand year-over-year in August, down to 3 point 14 million properties. All 50 states saw improvements in their non-current inventory over the previous six months, led by Florida with 18 percent.
While housing counselors across the country report improved communications with servicers in the area of helping struggling borrowers avoid foreclosure, there is still more work to be done, according to a report released Thursday from the National Foreclosure Mitigation Counseling program. The challenge most reported by counselors in s report was efficient and timely communication with servicers, reported by 38 percent of counselors, down slightly from 40 percent in the NFMC's report from October 2013.