Black Knight
has pointed out in the past that there is a temporary uptick in early mortgage
delinquencies when a month ends on a Sunday, leaving less time for servicers to
process last minute payments. May did not end on a Sunday this year, however
the last day of the month was Memorial Day, leaving even less time to post
those checks. The last time there was such a month-end double whammy in May was
in 2004, and the national delinquency rate jumped 15 percent. Not this
year. Black Knight, in its “first look” at May performance data, says that this
time the convergence of negative forces pushed the rate up only 1.5 percent to
4.73 percent. There were 2.51 million loans that were 30 or more days past due but
not in foreclosure at the end of May, 11,000 more than in April. Delinquencies
were down by 1.61 million or 30 percent compared to May of 2020, amid the
pandemic-related shutdowns.

 

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