Black Knight: Foreclosure Starts Surge Sevenfold in January, Hitting Highest Level in Two Years; Though Volumes Rising, Still 20% Below Pre-Pandemic Levels

Rhea-AI Summary

Black Knight, Inc. (NYSE:BKI) announced its January 2022 mortgage performance statistics highlighting a 3.30% total U.S. loan delinquency rate, showing a 2.37% month-over-month decrease and 43.62% year-over-year decline. Foreclosure pre-sale inventory increased to 0.28%, while foreclosure starts surged to 32,900, a 702.44% month-over-month rise, marking the highest level in two years. Notably, prepayment rates dropped 23.85% from the previous month. These metrics reflect significant market changes impacting investors.

Positive

• Total U.S. loan delinquency rate decreased to 3.30%, indicating improved mortgage performance.
• Year-over-year delinquency rate decline of 43.62% shows a strong recovery in mortgage payments.

Negative

• Foreclosure starts increased by 702.44% month-over-month, reaching a two-year high.
• Prepayment rates fell by 23.85% month-over-month, suggesting reduced refinancing activity.

JACKSONVILLE, Fla., Feb. 24, 2022 /PRNewswire/ -- Black Knight, Inc. (NYSE:BKI) reports the following "first look" at January 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): 3.30%
Month-over-month change: -2.37%
Year-over-year change: -43.62%

Total U.S. foreclosure pre-sale inventory rate: 0.28%
Month-over-month change: 16.48%
Year-over-year change: -12.69%

Total U.S. foreclosure starts: 32,900        
Month-over-month change: 702.44%
Year-over-year change: 457.63%

Monthly prepayment rate (SMM): 1.26%
Month-over-month change: -23.85%
Year-over-year change: -52.19%

Foreclosure sales as % of 90+: 0.36%
Month-over-month change: 21.02%
Year-over-year change: 331.92%

Number of properties that are 30 or more days past due, but not in foreclosure: 1,758,000
Month-over-month change: -41,000
Year-over-year change: -1,372,000

Number of properties that are 90 or more days past due, but not in foreclosure: 859,000
Month-over-month change: -87,000
Year-over-year change: -1,231,000

Number of properties in foreclosure pre-sale inventory: 149,000
Month-over-month change: 21,000
Year-over-year change: -22,000

Number of properties that are 30 or more days past due or in foreclosure: 1,907,000
Month-over-month change: -20,000
Year-over-year change: -1,394,000

Top 5 States by Non-Current* Percentage

Mississippi:                          6.94%
Louisiana:                            6.88%
West Virginia:                      5.28%
Alabama:                             5.12%
Oklahoma:                           5.03%                                                   

Bottom 5 States by Non-Current* Percentage

Utah:                                    2.19%
California:                            2.06%
Colorado:                             2.01%
Washington:                        1.95%
Idaho:                                  1.85%

Top 5 States by 90+ Days Delinquent Percentage

Louisiana:                           3.44%
Mississippi:                         3.13%
Alabama:                             2.31%
Arkansas:                            2.27%
West Virginia:                      2.25%                                                                                   

Top 5 States by 6-Month Improvement in Non-Current* Percentage

Hawaii:                             -43.39%
California:                        -33.34%
Nevada:                           -32.44%
Washington:                    -27.28%
District of Columbia:        -26.72%                                                                               

Top 5 States by 6-Month Deterioration in Non-Current* Percentage

Louisiana:                         -0.73%
Michigan:                          -5.03%
Iowa:                                 -6.06%
Alabama:                           -6.99%
Kentucky:                          -7.41%                                                                                     

*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 March 7, 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 Black Knight's current loan delinquency rate for January 2022?

The loan delinquency rate reported by Black Knight for January 2022 is 3.30%.

How did foreclosure starts change in January 2022 according to Black Knight?

Foreclosure starts surged to 32,900 in January 2022, a month-over-month increase of 702.44%.

What was the year-over-year change in loan delinquency rates for Black Knight?

Year-over-year, the loan delinquency rate decreased by 43.62%.

What information does Black Knight provide in its 'first look' reports?

Black Knight's 'first look' reports include key mortgage performance statistics such as delinquency and foreclosure rates.

When will Black Knight release more detailed mortgage performance data?

Black Knight will provide a more in-depth analysis in its monthly Mortgage Monitor report, available on March 7, 2022.