Delinquencies among borrowers for past-due mortgages surged by 1.6 million in April, the largest single-month jump in history, according to a report from Black Knight, a mortgage technology and data provider, as reported by the Detroit Free Press.
New York City ranked third in the top 100 largest metropolitan areas, with a 5.4% delinquency increase, behind only Miami (7.2%) and Las Vegas (6.2%). Nevada was among the states with the biggest delinquency rates, climbing 5.2% to nearly 8%. New Jersey and New York followed, rising 5.1% and 4.9%, respectively.
The data includes both homeowners past due on mortgage payments who aren’t in forbearance, along with those in forbearance plans and who didn’t make a mortgage payment in April.
At 6.45%, the national delinquency rate nearly doubled from 3.06% in March, the largest single-month increase recorded, and nearly three times the prior record for a single month during the height of the financial crisis in late 2008, Black Knight said. For context, it took more than 18 months before the first 1.6 million homeowners became delinquent during the Great Recession, says Andy Walden, economist and director of market research at Black Knight, adding that there is still potential for a second wave of delinquencies in May. “The impact of COVID-19 on the housing and mortgage markets has already been substantial," he says. "It will be some months before we can gauge the full extent of that impact. Whatever the ultimate scope, it is almost certain the effects will resonate for many months to come.”
The Coronavirus Aid, Relief and Economic Security Act, passed in March, allows homeowners to suspend their mortgage payments for up to a year on federally backed mortgages. It doesn’t protect mortgages that aren’t backed by the government, which make up about half of all mortgages nationwide.
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