Prepayments Rebound from All-Time Low

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Overall Mortgage Delinquencies Inch Up As 30-Days Late Payments Rise

• The national mortgage delinquency rate increased 7 basis points in February to 3.45%, but remains down 12.6% year over year
• Prepayment activity (SMM) inched up to 0.35% — breaking a four-month streak of record lows, with relief likely to extend as the spring homebuying season takes hold
• A 36K rise in overall delinquencies was driven by a nearly 65K increase in those just a single payment behind, while 60-day delinquencies fell by nearly 12K (-4.0%) and 90-day delinquencies fell by 17K (-3.0%)
• 45 states saw their serious delinquency volumes (90+ days past due) improve in February
• Foreclosure starts decreased by 9% in the month to 29K, breaking a streak of increases, with starts remaining 19% below pre-pandemic levels
• Foreclosure starts equated to 5.1% of serious delinquencies in February, down from January and still 25% below the start rate seen in February 2020 prior to the pandemic
• Active foreclosure inventory rose marginally (+2K) in the month, and is up 34K (+15%) from February 2022 despite remaining 15% below its pre-pandemic level
• February saw 7.1K foreclosure sales (completions) nationally, up 2.5% from the month prior

Black Knight, Inc. (NYSE:BKI) reports the following “first look” at February 2023 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): 3.45%
Month-over-month change: 1.96%
Year-over-year change: -12.56%

Total U.S. foreclosure pre-sale inventory rate: 0.46%
Month-over-month change: 0.81%
Year-over-year change: 15.18%

Total U.S. foreclosure starts: 29,000        
Month-over-month change: -9.35%
Year-over-year change: -4.15%

Monthly prepayment rate (SMM): 0.35%
Month-over-month change: 6.23%
Year-over-year change: -71.46%

Foreclosure sales: 7,100
Month-over-month change: 2.46%
Year-over-year change: 41.53%

Number of properties that are 30 or more days past due, but not in foreclosure: 1,811,000
Month-over-month change: 36,000
Year-over-year change: -235,000

Number of properties that are 90 or more days past due, but not in foreclosure: 562,000
Month-over-month change: -17,000
Year-over-year change: -383,000

Number of properties in foreclosure pre-sale inventory: 240,000
Month-over-month change: 2,000
Year-over-year change: 34,000

Number of properties that are 30 or more days past due or in foreclosure: 2,050,000
Month-over-month change: 38,000
Year-over-year change: -200,000

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 12-Month Change in Non-Current* Percentage

Bottom 5 States by 12-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. The company will provide a more in-depth review of this data in its monthly Mortgage Monitor report, which includes an analysis of data supplemented by detailed charts and graphs that reflect trend and point-in-time observations. The Mortgage Monitor report will be available online at https://www.blackknightinc.com/data-reports/ by April 3, 2023. For more information about gaining access to Black Knight’s loan-level database, please send an email to Mortgage.Monitor@bkfs.com.

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