Black Knight's August Mortgage Data: Average Loan Age Highest on Record at 54 Months; 2012-2014 Vintages Best Performing on Record
- Weighted average loan age higher among low credit score loans; higher credit brackets have remained constant
- Resurgence in new originations temporarily impacted loan age in 2013; new loan volume not enough to offset older mortgage population
- 2012-2014 mortgage originations best performing on record, even among credit scores below 660
- Half of all loans in foreclosure in 2013 remain in that status; 25 percent of these had been modified
JACKSONVILLE, Fla., Oct. 6, 2014 /PRNewswire/ -- Today, the Data and Analytics division of Black Knight Financial Services released its latest Mortgage Monitor Report, based on data as of the end of August 2014. Looking at the weighted average loan age among the active mortgage population, Black Knight found that while loan age varies among different credit score groups, in general the average loan age has been rising steadily. According to Kostya Gradushy, Black Knight's manager of Research and Analytics, the weighted average loan age has reached its highest point ever.
"In terms of the entire active mortgage population, average loan age has been rising steadily for at least the last nine years," said Gradushy. "The high volume of originations in 2013 resulted in a temporary slowdown. However, the average loan age since then has hit its highest level ever at 54 months. Reviewing the data at a more granular level, we see that the age of loans with credit scores of 750 and above has remained relatively constant for the last five years. However, lower credit score loans -- particularly those with scores below 700 -- have seen dramatic increases in average age."
"We also looked again at mortgage performance and found delinquencies in 2012-2014 vintage loans lower than any of the prior seven years. In fact, even among borrowers with lower credit scores, these vintages are outperforming all previous vintages. This holds true for FHA mortgages as well, where we found that early-stage delinquencies were lower than in all pre-2012 vintages."
Black Knight also examined the status of loans that had been in foreclosure at the end of 2013 and found that nearly half (49 percent) of those loans remained in that status as of August 2014. Further, 25 percent of these loans had been modified at some point in the last eight months before falling back into foreclosure. Looking more widely at modifications completed on loans in foreclosure over the past four years, Black Knight found the three-month re-default rate on 2014 modifications to be the highest since 2011. This held true only for modifications on loans in foreclosure, though. Re-default rates on modifications of loans in delinquent statuses of both 90 days and 120 days or more past due actually saw re-default rates decline again in 2014, as they have for the last four years.
As was reported in Black Knight's most recent First Look release, other key results include:
| Total U.S. loan delinquency rate: |
5.90% |
| Month-over-month change in delinquency rate: |
4.68% |
| Total U.S. foreclosure pre-sale inventory rate: |
1.80% |
| Month-over-month change in foreclosure pre-sale inventory rate: |
-2.80% |
| States with highest percentage of non-current* loans: |
MS, NJ, LA, NY, FL |
| States with the lowest percentage of non-current* loans: |
AK, MT, CO, SD, ND |
| States with highest percentage of seriously delinquent* loans: |
MS, AL, LA, RI, MA |
| *Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state. |
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| *Seriously delinquent loans are those past-due 90 days or more. |
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| Totals are extrapolated based on Black Knight Financial Services' loan-level database of mortgage assets. |
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About the Mortgage Monitor
The Data and Analytics division of Black Knight Financial Services manages the nation's leading repository of loan-level residential mortgage data and performance information on approximately two-thirds of the overall market, including tens of millions of loans across the spectrum of credit products and more than 140 million historical records. The company's research experts carefully analyze this data to produce a summary supplemented by dozens of charts and graphs that reflect trend and point-in-time observations for the monthly Mortgage Monitor Report. To review the full report, visit: http://www.bkfs.com/CorporateInformation/NewsRoom/Pages/Mortgage-Monitor.aspx
About Black Knight Financial Services, LLC
Black Knight Financial Services, a Fidelity National Financial (NYSE:FNF) company, is the mortgage and finance industries' leading provider of integrated technology, data and analytics solutions that facilitate and automate many of the business processes across the mortgage lifecycle.
Black Knight Financial Services is committed to being the premier business partner that lenders and servicers rely on to achieve their strategic goals, realize greater success and better serve their customers by delivering best-in-class technology, services and insight with a relentless commitment to excellence, innovation, integrity and leadership. For more information on Black Knight Financial Services, please visit www.bkfs.com.
SOURCE Black Knight Financial Services
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