Home Foreclosure Prepayment activity hit a record high in October as rates topped 7%; Mortgage delinquencies up 4.5% in early signs of Hurricane Ian impact

Prepayment activity hit a record high in October as rates topped 7%; Mortgage delinquencies up 4.5% in early signs of Hurricane Ian impact

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– Prepayments fell 16.5% to a one-month mortality rate (SMM) of 0.48%, well below the previous record high of 0.55% and the lowest since at least 2000, when Black Knight started reporting the metric

– The national delinquency rate rose 4.5% in October to 2.91% – up 12 basis points since September – thanks to a sharp 9.4% increase in 30-day delinquencies

Florida boosted new early delinquencies (+19K) – with the government default rate up 53 basis points to 3.42% – giving a first indication of the impact of Hurricane Ian

– Loans 60 days past due rose 2.9% nationally, while loans past due 90 days or more saw continued – albeit modest – improvement, falling another 1.5% in October

– October 19.6K foreclosure housing starts represented a 7% increase that partially reversed the September decline, but are still 55% below pre-pandemic levels

– Initiated foreclosures were initiated on 4% of existing serious delinquencies in October, up slightly from September but still less than half the rate seen in the years before the pandemic

– Inventory of active seizures remained stable, with volumes remaining subdued in 2022 due to still historically low starting levels of seizures

JACKSONVILLE, Florida., November 22, 2022 /PRNewswire/ — Dark Knight, Inc. (NYSE:BKI) reports the following “first look” at October 2022 month-end mortgage yield statistics drawn from its loan-level database representing the majority of the national mortgage market.

Black Knight, Inc. logo (PRNewsfoto/Black Knight, Inc.)

U.S. Total Delinquent Loan Rate (loans 30 days or more past due but not foreclosed): 2.91%
Month-to-month change: 4.45%
Year-over-year change: -22.32%

Total pre-sale inventory rate in the United States: 0.35%
Month-to-month change: 0.42%
Year-over-year change: 33.22%

Total number of seizures in the United States: 19,600
Month-to-month change: 6.52%
Year-over-year change: 390.00%

Monthly prepayment rate (SMM): 0.48%
Month-on-month change: -16.48%
Year-over-year change: -75.47%

Foreclosure sales in % of 90+: 0.59%
Month-on-month change: -1.47%
Year-over-year change: 117.07%

Number of properties overdue for 30 days or more but not seized: 1,557,000
Month-to-month change: 66,000
Year-over-year change: -429,000

Number of properties overdue for 90 days or more but not seized: 551,000
Month-to-month change: -7,000
Year-over-year change: -555,000

Number of properties in foreclosure pre-sale inventory: 186,000
Month-to-month change: 1,000
Year-over-year change: 48,000

Number of properties overdue for 30 days or more or in foreclosure: 1,743,000
Month-to-month change: 66,000
Year-over-year change: -382,000

Top 5 states by non-current percentage*
Mississippi: 6.50%
Louisiana: 5.75%
Oklahoma: 4.88%
Alabama: 4.64%
West Virginia: 4.47%

Bottom 5 States by Non-Current Percentage*
Colorado: 2.05%
Oregon: 1.99%
California: 1.84%
Idaho: 1.74%
Washington: 1.67%

Top 5 States by Percentage of 90+ Day Offenders
Mississippi: 2.38%
Louisiana: 1.90%
Alabama: 1.66%
Oklahoma: 1.55%
Arkansas: 1.54%

Top 5 states by 6-month change in non-current percentage*
Alaska: -23.82%
Hawaii: -20.35%
New York: -14.00%
North Dakota: -10.47%
New Jersey: -3.13%

Bottom 5 States by 6-Month Change in Non-Current Percentage*
Iowa: 22.96%
Florida: 16.80%
Colorado: 15.91%
South Dakota: 13.12%
Arizona: 12.43%

*Non-current totals combine foreclosures and delinquencies as a percentage of active loans in that state.
Remarks:
1) Totals are extrapolated based on Black Knight Mortgage Database.
2) All integers 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 Dark Knight Newsroom. The company will provide a more in-depth look at this data in its monthly Mortgage Monitor report, which includes an analysis of the data supplemented by detailed charts and graphs that reflect trends and point observations. The Mortgage Monitor report will be available online at https://www.blackknightinc.com/data-reports/ by December 5, 2022. For more information on accessing Black Knight’s Loan Level Database, please email [email protected]

About the Dark Knight

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

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

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SOURCEBlack Knight, Inc.