Black Knight's First Look: Mortgage Delinquencies and Foreclosure Starts Edge Higher in June but Remain Well Below Pre-Pandemic Levels

Rhea-AI Summary

Black Knight, Inc. (NYSE:BKI) reported a slight rise in the national delinquency rate to 2.84% in June, marking a 9 basis point increase and ending a three-month record low trend. Notably, foreclosure starts surged by 27%, though they remain 40% below pre-pandemic levels. Furthermore, prepayment activity dropped by 7%, reflecting a 64% decrease year-over-year. Overall, the mortgage market shows signs of stress but remains significantly lower than pandemic peaks.

Positive

• Delinquency rate improvement year-over-year by 35.10%.
• Foreclosure starts and inventory growth remain below pre-pandemic levels.

Negative

• National delinquency rate rose to 2.84% from record lows.
• Foreclosure starts increased by 27% month-over-month.
• Prepayment activity declined by 7%, with a 64% drop from last year.

• The national delinquency rate rose nine basis points from May to reach 2.84%, after hitting consecutive record lows in each of the prior three months
• Increases were broad-based – the number of borrowers a single payment past due rose 5%, while 90-day delinquencies broke a 21-month streak of improvement with a modest 1% uptick from the prior month
• Foreclosure starts were also up 27% in June – still 40% below pre-pandemic levels – marking a 441% year-over-year increase; a significant rise from pandemic-driven lows
• Starts also represented the highest share (4%) of serious delinquencies since March 2020, but less than half the rate in the years leading up to the pandemic
• Active foreclosure inventory rose by 16K in the month as volumes continue to slowly come off the record lows brought on by widespread moratoriums and forbearance protections in 2020/21
• Prepayment activity was down another 7% in June with prepays now down by 64% from the same time last year as rising rates put downward pressure on both purchase and refinance lending

JACKSONVILLE, Fla., July 25, 2022 /PRNewswire/ -- Black Knight, Inc. (NYSE:BKI) reports the following "first look" at June 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): 2.84% 
Month-over-month change: 3.31%
Year-over-year change: -35.10%

Total U.S. foreclosure pre-sale inventory rate: 0.36% 
Month-over-month change: 8.73%
Year-over-year change: 30.05%

Total U.S. foreclosure starts: 23,800         
Month-over-month change: 26.60%
Year-over-year change: 440.91%

Monthly prepayment rate (SMM): 0.81% 
Month-over-month change: -7.07%
Year-over-year change: -64.27%

Foreclosure sales as % of 90+: 0.53% 
Month-over-month change: 6.15%
Year-over-year change: 328.83%

Number of properties that are 30 or more days past due, but not in foreclosure: 1,511,000 
Month-over-month change: 50,000
Year-over-year change: -809,000

Number of properties that are 90 or more days past due, but not in foreclosure: 599,000 
Month-over-month change: 4,000
Year-over-year change: -951,000

Number of properties in foreclosure pre-sale inventory: 190,000 
Month-over-month change: 16,000
Year-over-year change: 45,000

Number of properties that are 30 or more days past due or in foreclosure: 1,700,000 
Month-over-month change: 65,000
Year-over-year change: -766,000

Top 5 States by Non-Current* Percentage 
Mississippi:                          6.41%
Louisiana:                            5.65%
Alabama:                             4.72%
Oklahoma:                           4.69%
West Virginia:                      4.68%

Bottom 5 States by Non-Current* Percentage 
Utah:                                    1.95%
Colorado:                             1.86%
California:                            1.80%
Washington:                         1.66%
Idaho:                                   1.66%

Top 5 States by 90+ Days Delinquent Percentage 
Mississippi:                          2.43%
Louisiana                             2.11%
Alabama                              1.77%
Alaska                                 1.62%
Maryland                             1.59%                                                                                   

Top 5 States by 6-Month Change in Non-Current* Percentage 
District of Columbia:                             -21.83%
Hawaii:                                                 -21.82%
Nevada:                                                -20.56%
Louisiana:                                             -19.99%
Washington:                                          -18.38%                                                                               

Bottom 5 States by 6-Month in Non-Current* Percentage 
North Dakota:                                          1.91%
Iowa:                                                      -2.50%
Maine:                                                    -3.20%
Kansas:                                                  -4.71%
Missouri:                                                 -5.00%                                                                                 

*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 Aug. 1, 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 reported by Black Knight for June 2022?

The delinquency rate for June 2022 is 2.84%, an increase of 9 basis points from May.

How many foreclosure starts were reported by Black Knight in June 2022?

Black Knight reported 23,800 foreclosure starts in June 2022, marking a 27% month-over-month increase.

What was the year-over-year change in foreclosure starts as per the latest Black Knight report?

Foreclosure starts showed a 440.91% increase year-over-year.

How has the prepayment activity changed according to Black Knight’s June 2022 report?

Prepayment activity in June 2022 declined by 7% and is down 64% year-over-year.

What does the latest report by Black Knight say about the mortgage market trends?

The report indicates a slight rise in delinquencies and foreclosures, though overall metrics remain lower than pandemic levels.