Black Knight's First Look: Foreclosure Starts Pull Back in July, Holding Well Below Pre-Pandemic Levels, While Early-Stage Delinquencies Edge Slightly Higher
In July 2022, the national loan delinquency rate rose to 2.89%, driven by a 4% increase in early-stage delinquencies. However, this remains just 14 basis points above May's record low. Serious delinquencies decreased, indicating improvements, with loans curing to current dropping from 104K in March to 58K in July. Foreclosure starts fell 25% from June, totaling 17.7K. Prepayment activity decreased by 18%, now down 67% year-over-year due to rising rates, impacting both purchases and refinances.
- Serious delinquencies pulled back, indicating a potential stabilization in the market.
- Foreclosure starts decreased significantly, suggesting a slower recovery from prior peaks.
- The overall delinquency rate, while up, remains historically low compared to pre-pandemic levels.
- The early-stage delinquency rate is trending upwards, which could signal future issues.
- Prepayment activity is sharply declining, indicating lower refinancing and purchase lending.
- The national delinquency rate edged up to
- Serious delinquencies – loans 90 or more days past due, but not yet in active foreclosure – pulled back in July after worsening for the first time in 22 months in June
- The number of seriously delinquent loans curing to current has dropped steadily over recent months, from 104K in March to 58K in July, indicating that the easiest workouts have likely been completed
- Foreclosure starts retreated
- Though still up from record lows that came from widespread moratoriums and forbearance protections last year, the number of loans in active foreclosure declined slightly by 6K in July
- Prepayment activity dropped by another
JACKSONVILLE, Fla., Aug. 24, 2022 /PRNewswire/ -- Black Knight, Inc. (NYSE:BKI) reports the following "first look" at July 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):
Month-over-month change:
Year-over-year change: -
Total U.S. foreclosure pre-sale inventory rate:
Month-over-month change: -
Year-over-year change:
Total U.S. foreclosure starts: 17,700
Month-over-month change: -
Year-over-year change:
Monthly prepayment rate (SMM):
Month-over-month change: -
Year-over-year change: -
Foreclosure sales as % of 90+:
Month-over-month change: -
Year-over-year change:
Number of properties that are 30 or more days past due, but not in foreclosure: 1,543,000
Month-over-month change: 32,000
Year-over-year change: -663,000
Number of properties that are 90 or more days past due, but not in foreclosure: 594,000
Month-over-month change: -5,000
Year-over-year change: -853,000
Number of properties in foreclosure pre-sale inventory: 184,000
Month-over-month change: -6,000
Year-over-year change: 44,000
Number of properties that are 30 or more days past due or in foreclosure: 1,728,000
Month-over-month change: 28,000
Year-over-year change: -618,000
Top 5 States by Non-Current* Percentage | |
Mississippi: | 6.44 % |
Louisiana: | 5.75 % |
Oklahoma: | 4.89 % |
Alabama: | 4.88 % |
West Virginia: | 4.74 % |
Bottom 5 States by Non-Current* Percentage | |
Oregon: | 2.02 % |
Colorado: | 1.90 % |
California: | 1.83 % |
Idaho: | 1.74 % |
Washington: | 1.71 % |
Top 5 States by 90+ Days Delinquent Percentage | |
Mississippi: | 2.43 % |
Louisiana: | 2.08 % |
Alabama: | 1.79 % |
Alaska: | 1.70 % |
Maryland: | 1.57 % |
Top 5 States by 6-Month Change in Non-Current* Percentage | |
Hawaii: | -27.37 % |
Vermont: | -18.56 % |
New York: | -18.14 % |
Nevada: | -17.11 % |
Louisiana: | -16.39 % |
Bottom 5 States by 6-Month Change in Non-Current* Percentage | |
Iowa: | 0.66 % |
Kansas: | -1.16 % |
Oklahoma: | -2.75 % |
North Dakota: | -2.94 % |
Alaska: | -3.83 % |
*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state. | |
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 by Sept. 7, 2022. For more information about gaining access to Black Knight's loan-level database, please send an email to Mortgage.Monitor@bkfs.com.
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 |
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SOURCE Black Knight, Inc.
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