BLACK KNIGHT’S FIRST LOOK: PREPAYMENTS HIT THIRD CONSECUTIVE RECORD LOW IN NOVEMBER

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• Prepayment activity in November dropped 15.6% to a single month mortality (SMM) rate of 0.40% – once again marking the lowest rate on record since before 2000 when Black Knight started reporting the metric
• The national delinquency rate rose another 3.5% in November to 3.01%, up 10 basis points since October, driven by a 31K (+3.9%) increase in 30-day delinquencies and a 25K (+11%) rise in 60-day delinquencies
• The delinquency rate in Florida rose another 18 basis points in the month to 3.60% as the impact of Hurricane Ian on homeowners’ ability to make mortgage payments continues
• Improvement among seriously past-due loans continues to stagnate, with the population of 90-day delinquencies ticking down -0.2% from the month prior
• Foreclosure starts rose again (+19%) on the heels of October’s increase, but the month’s 23.4K starts are still below the recent high seen in June 2022 and remain 30% below pre-pandemic levels
• Foreclosure was started on 4.3% of serious delinquencies in November, up 7 basis points from October but still 44% less than the rate seen in the years leading up to the pandemic
• Active foreclosure inventory rose 5.3%, though 2022 volumes remain subdued after the record lows of 2021 due to widespread moratoriums and forbearance protections

Black Knight, Inc. reports the following “first look” at November 2022 month-end mortgage performance statistics derived from its loan-level database representing the majority of the national mortgage market.

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 3.01%
Month-over-month change: 3.46%
Year-over-year change: -16.18%

Total U.S. foreclosure pre-sale inventory rate: 0.37%
Month-over-month change: 5.29%
Year-over-year change: 46.60%

Total U.S. foreclosure starts: 23,400
Month-over-month change: 19.39%
Year-over-year change: 532.43%

Monthly prepayment rate (SMM): 0.40%
Month-over-month change: -15.57%
Year-over-year change: -77.26%

Foreclosure sales as % of 90+: 0.55%
Month-over-month change: -6.73%
Year-over-year change: 109.66%

Number of properties that are 30 or more days past due, but not in foreclosure: 1,612,000
Month-over-month change: 55,000
Year-over-year change: -294,000

Number of properties that are 90 or more days past due, but not in foreclosure: 550,000
Month-over-month change: -1,000
Year-over-year change: -476,000

Number of properties in foreclosure pre-sale inventory: 196,000
Month-over-month change: 10,000
Year-over-year change: 64,000

Number of properties that are 30 or more days past due or in foreclosure: 1,808,000
Month-over-month change: 65,000
Year-over-year change: -231,000

Top 5 States by Non-Current* Percentage

Bottom 5 States by Non-Current* Percentage

Top 5 States by 90+ Days Delinquent Percentage

Top 5 States by 6-Month Change in Non-Current* Percentage

Bottom 5 States by 6-Month Change in Non-Current* Percentage

*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.

Notes:

1. Totals are extrapolated based on Black Knight’s loan-level database of mortgage assets.
2.  All whole numbers are rounded to the nearest thousand, except foreclosure starts, which are rounded to the nearest hundred.

For a more detailed view of this month’s “first look” data, please visit the Black Knight newsroom. Please note that Black Knight does not release an edition of the Mortgage Monitor report over the holidays and will return to its normal publishing schedule the first week of February 2023.

For more information about gaining access to Black Knight’s loan-level database, please send an email to Mortgage.Monitor@bkfs.com.

For more information on Black Knight, please visit www.blackknightinc.com.

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