Black Knight attributed the increase to continued hurricane-related fallout as well as seasonal and calendar-related pressures.
Hurricanes Harvey and Irma have now resulted in 142,700 severely delinquent loans, representing 20% of all such delinquencies across the US. Black Knight attributed 102,500 severely delinquent loans in hurricane-impacted areas in Florida and Georgia to Irma. Meanwhile, Harvey has resulted in 40,200 such delinquencies in southeastern Texas.
With the increase in Florida, the state has now overtaken Mississippi as the state with the highest percentage of severely delinquent mortgages. In Florida, 4.14% of mortgages were severely delinquent in December, compared with 3.36% in Mississippi. The percentage of severely delinquent loans in Texas was 2.4%.
The total US loan delinquency rate was 4.71% in December, its highest level since early 2016. The overall rate, which represents loans 30 or more days past due but not yet in active foreclosure, increased 3.47% from November and rose 6.54% on a year-over-year basis. December marked the fourth straight month of annual increases to the national delinquency rate.
Foreclosure starts totaled 44,500 in December, a post-recession low. The figure declined 6.9% month over month and 25.46% year over year. The month also recorded an improvement in the inventory of loans in active foreclosure, falling 152,000 from December 2016 for a 32% annual decline.
Hurricanes continue to impact October delinquencies
Hurricane fallout drives surge in past-due mortgages
The number of properties that have been delinquent for 90 days or more but not in foreclosure increased by an additional 60,000 mortgages in December from November, according to a first look at December mortgage performance statistics released by Black Knight.