Black Knight’s First Look: Prepayments Rebound from All-Time Low; 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.

About Black Knight

Black Knight, Inc. (NYSE:BKI) is an award-winning software, data and analytics company that drives innovation in the mortgage lending and servicing and real estate industries, as well as the capital and secondary markets. Businesses leverage our robust, integrated solutions across the entire homeownership life cycle to help retain existing customers, gain new customers, mitigate risk and operate more effectively.

Our clients rely on our proven, comprehensive, scalable products and our unwavering commitment to delivering superior client support to achieve their strategic goals and better serve their customers. For more information on Black Knight, please visit www.blackknightinc.com.

SOURCE Black Knight, Inc.