Black Knight: February Uptick in Early-Stage Delinquencies Drives First Increase in Past- Due Mortgages in Nine Months; Foreclosure Starts Fall 24% Following January Spike

Rhea-AI Summary

Black Knight, Inc. (NYSE:BKI) reports an increase in past-due loans by 1.8% in February 2022, primarily due to a rise of 97,000 in early-stage delinquencies. However, the national delinquency rate remains stable at 3.36%, showing a significant year-over-year decline of 44.09%. Notably, seriously delinquent mortgages dropped by 72,000, while foreclosure starts fell by 24% from January, totaling 25,000. This marks a 23% decrease compared to February 2020, highlighting a recovery trend as borrowers return from forbearance plans.

Positive

• National delinquency rate stable at 3.36%, down 44.09% YoY.
• Seriously delinquent mortgages decreased by 72,000.
• Foreclosure starts fell by 24% from January, 23% below February 2020 levels.

Negative

• Past-due loans increased by 1.8% in February.
• Rise of 97,000 in early-stage delinquencies.

Though past-due loans edged higher (+1.8%) in February, the national delinquency rate remains near pre-pandemic levels heading into March, which typically sees strong seasonal performance improvements

February's increase was driven by a rise of 97,000 in early-stage delinquencies – which nevertheless remain well below pre-pandemic levels

At the same time, the number of seriously delinquent mortgages (those 90 or more days past due) fell by 72,000 as borrowers leaving forbearance plans continue to return to making payments

After seeing a sizable spike in January, foreclosure starts pulled back by 24% in February, with the month's 25,000 starts 23% below February 2020 levels, prior to the onset of pandemic-related economic stress

Likewise, despite a 13,000 increase in the number of loans in active foreclosure, the population remains 32% below February 2020 levels

JACKSONVILLE, Fla., March 24, 2022 /PRNewswire/ -- Black Knight, Inc. (NYSE:BKI) reports the following "first look" at February 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): 3.36% 
Month-over-month change: 1.76% 
Year-over-year change: -44.09%

Total U.S. foreclosure pre-sale inventory rate: 0.31% 
Month-over-month change: 9.35% 
Year-over-year change: -3.41%

Total U.S. foreclosure starts: 25,000 
Month-over-month change: -24.01% 
Year-over-year change: 541.03%

Monthly prepayment rate (SMM): 1.12% 
Month-over-month change: -10.85% 
Year-over-year change: -60.68%

Foreclosure sales as % of 90+: 0.31% 
Month-over-month change: -14.05% 
Year-over-year change: 243.17%

Number of properties that are 30 or more days past due, but not in foreclosure: 1,783,000 
Month-over-month change: 25,000 
Year-over-year change: -1,403,000

Number of properties that are 90 or more days past due, but not in foreclosure: 787,000 
Month-over-month change: -72,000 
Year-over-year change: -1,288,000

Number of properties in foreclosure pre-sale inventory: 162,000 
Month-over-month change: 13,000 
Year-over-year change: -6,000

Number of properties that are 30 or more days past due or in foreclosure: 1,946,000 
Month-over-month change: 39,000 
Year-over-year change: -1,408,000

Top 5 States by Non-Current* Percentage 
Mississippi:                         6.96% 
Louisiana:                           6.80% 
West Virginia:                     5.33% 
Alabama:                            5.24% 
Oklahoma:                          5.14%                                                   

Bottom 5 States by Non-Current* Percentage 
Montana:                            2.39% 
California:                           2.31% 
Colorado:                           2.17% 
Washington:                       2.03% 
Idaho:                                 1.98%

Top 5 States by 90+ Days Delinquent Percentage 
Louisiana:                           3.07% 
Mississippi:                         2.92% 
Alabama:                            2.17% 
West Virginia:                     2.13% 
Arkansas:                           2.08%                                                                                   

Top 5 States by 6-Month Improvement in Non-Current* Percentage 
Hawaii:                               -40.72% 
Nevada:                             -27.13% 
New Jersey:                      -23.88% 
California:                          -23.22% 
District of Columbia:          -22.92%                                                                               

Top 5 States by 6-Month Deterioration in Non-Current* Percentage 
Michigan:                            1.33% 
Utah:                                   -2.39% 
Iowa:                                   -3.00% 
Alabama:                            -3.39% 
Maine:                                -3.61%                                                                                 

*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.

Prepayment activity – as reflected in single-month mortality – fell another 11% in February, hitting a nearly three-year low as rising rates continue to impact refinance volumes. 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 4, 2022. 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.

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 current delinquency rate for Black Knight (BKI) as of February 2022?

As of February 2022, the delinquency rate for Black Knight (BKI) is 3.36%, which reflects a year-over-year decline of 44.09%.

How many foreclosure starts were reported by Black Knight (BKI) in February 2022?

In February 2022, Black Knight (BKI) reported 25,000 foreclosure starts, a decrease of 24% from January.

What factors contributed to the increase in past-due loans for Black Knight (BKI) in February 2022?

The increase in past-due loans by 1.8% in February 2022 was primarily driven by a rise of 97,000 in early-stage delinquencies.

How does the current mortgage performance compare to pre-pandemic figures for Black Knight (BKI)?

While past-due loans increased, foreclosure starts in February 2022 were 23% below levels seen in February 2020, indicating an improvement in mortgage performance.