Black Knight: Past-Due Mortgages Approach Recent Record Lows as Serious Delinquencies Continue Improvement; Prepayments See Seasonal Rise

Rhea-AI Summary

The national delinquency rate fell to 3.10% in May, the lowest since March 2023. Serious delinquencies improved by 3.7% and foreclosure starts increased by 2.2%. Prepayment activity rose to the highest level since September 2022.

Positive

• The national delinquency rate fell 11 bps to 3.10%, the lowest since March 2023
• Serious delinquencies improved by 3.7% from April
• Foreclosure starts increased to 25.4K, near a 6-month low
• Prepayment activity rose to a 0.54% single-month mortality (SMM) rate, the highest since September 2022

Negative

• None.

• Reversing much pf April's calendar-driven spike, the national delinquency rate fell 11 basis points (bps) in May to hit 3.10% – the lowest it's been other than March 2023's record of 2.92%
• The number of borrowers a single payment past due improved by 94K (-9.5%), erasing nearly half of the prior month's increase
• Serious delinquencies (loans 90 or more days past due) continued to improve nationally – falling by 18K (-3.7%) from April, putting the population of such loans down more than 200K (nearly 30%) since May 2022
• Though foreclosure starts increased to 25.4K for the month (+2.2%), they remain near April's 6-month low and 41% % below the same period in 2019, the last comparable May before the pandemic
• Foreclosure actions were started on 5.1% of serious delinquencies in May, up only marginally from April and still more than a full percentage point below the March 2020 rate at the start of the pandemic
• The number of loans in active foreclosure improved by 4K in the month and is now down 41K (-15%) from March 2020, with foreclosure sales (completions) rising 5.5% from April to 6.8K
• Prepayment activity rose to a 0.54% single-month mortality (SMM) rate – the highest level seen since September 2022, despite interest rates in the 6.7% range – but is still down 40% from May of 2022

JACKSONVILLE, Fla., June 23, 2023 /PRNewswire/ -- Black Knight, Inc. (NYSE:BKI) reports the following "first look" at May 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): 3.10%
Month-over-month change: -6.25%
Year-over-year change: -2.62%

Total U.S. foreclosure pre-sale inventory rate: 0.43%
Month-over-month change: -2.03%
Year-over-year change: 2.02%

Total U.S. foreclosure starts: 25,400       
Month-over-month change 2.16%
Year-over-year change: -4.39%

Monthly prepayment rate (SMM): 0.54%
Month-over-month change: 23.12%
Year-over-year change: -40.11%

Foreclosure sales: 6,800
Month-over-month change: 5.50%
Year-over-year change: 18.95%

Number of properties that are 30 or more days past due, but not in foreclosure: 1,639,000
Month-over-month change: -107,000
Year-over-year change: -20,000

Number of properties that are 90 or more days past due, but not in foreclosure: 483,000
Month-over-month change: -18,000
Year-over-year change: -203,000

Number of properties in foreclosure pre-sale inventory: 229,000
Month-over-month change: -4,000
Year-over-year change: 8,000

Number of properties that are 30 or more days past due or in foreclosure: 1,868,000
Month-over-month change: -112,000
Year-over-year change: -13,000

Top 5 States by Non-Current* Percentage 
Mississippi:                         7.34%
Louisiana:                            6.78%
Alabama:                             5.33%
West Virginia                     4.87%
Pennsylvania:                    4.84%

Bottom 5 States by Non-Current* Percentage 
Oregon:                               2.09%
Montana:                            2.02%
Idaho:                                   2.01%
Colorado:                            1.96%
Washington:                      1.92%

Top 5 States by 90+ Days Delinquent Percentage 
Mississippi:                         2.21%
Louisiana:                            1.81%
Alabama:                             1.55%
Arkansas:                            1.34%
Georgia:                               1.23%

Top 5 States by 12-Month Change in Non-Current* Percentage
Alaska:                                  -24.21%
Connecticut:                      -15.19%
Vermont:                            -12.33%
New York:                           -11.87%
North Dakota:                   -10.76%                                                                               

Bottom 5 States by 12-Month Change in Non-Current* Percentage 
Idaho:                                   14.44%
Utah:                                    6.09%
Arizona                                 5.84%
Michigan:                            5.62%
Georgia:                               3.35%                                                                   

*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 and sales, which are rounded to the nearest hundred.

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 July 10, 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 serving their customers. For more information on Black Knight, please visit www.blackknightinc.com/. 

For more information:
Michelle Kersch	Mitch Cohen
904.854.5043	704.890.8158
michelle.kersch@bkfs.com	mitch.cohen@bkfs.com

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SOURCE Black Knight, Inc.

FAQ

What is the national delinquency rate in May?

The national delinquency rate in May was 3.10%

How much did serious delinquencies improve?

Serious delinquencies improved by 3.7%

What was the increase in foreclosure starts?

Foreclosure starts increased to 25.4K

What was the prepayment activity rate in May?

The prepayment activity rate in May was 0.54%