ICE First Look at Monthly Mortgage Performance: Delinquencies Rose in September While Foreclosure Activity Remained Muted

Rhea-AI Summary

The national delinquency rate rose to 3.29% in September, marking the largest annual increase in the past 2.5 years. Despite the rise, the delinquency rate is still below pre-pandemic levels. Serious delinquencies rose, but the number of loans in active foreclosure fell to its lowest point since March 2022. Prepay activity dropped under pressure from seasonal homebuying patterns. Intercontinental Exchange, Inc. reports these mortgage performance statistics.

Positive

• The national delinquency rate rose to 3.29% in September, marking a 12 basis points increase from August and a 13 basis points increase year over year.
• The delinquency rate is still 71 basis points below the level of pre-pandemic September 2019.
• The number of loans in active foreclosure fell to 214K in September, its lowest point since March 2022 and 25% below 2019 pre-pandemic levels.
• Foreclosure starts declined by -20.4% in the month to 25.4K.
• Prepay activity dropped to 0.45%, down -26% year over year.

Negative

• Serious delinquencies rose by 7K to 455K.
• Foreclosure starts fell by -20.4% in the month to 25.4K.
• Prepay activity dropped to 0.45%, down -26% year over year.

• The national delinquency rate rose to 3.29% in September, up 12 basis points (BPS) from August and up +13BPS year over year, marking only the second - and largest – annual increase in the past 2.5 years
• Despite the rise, the delinquency rate is still 71BPS below the level of pre-pandemic September 2019
• Loans 30 days past due rose by 48.8K (+5.1%) – marking the fourth consecutive monthly rise – while the 60-day delinquent population extended its own streak of increases (+8.7K; +3.0%) to six months
• At the national level, serious delinquencies (90+ days past due) rose by 7K to 455K, but remain 6.7% below September 2019 levels
• While overall delinquencies have risen, the number of loans in active foreclosure fell to 214K in September, its lowest point since March 2022 and some 25% below 2019 pre-pandemic levels
• Foreclosure starts also declined, falling by -20.4% in the month to 25.4K, with completed sales falling by 8% from the month prior
• Prepay activity (measured as single-month mortality) dropped to 0.45% under continued pressure from seasonal homebuying patterns confounded by interest rates north of 7%, and is down -26% year over year

ATLANTA and NEW YORK, Oct. 23, 2023 /PRNewswire/ -- Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, reports the following "first look" at September 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): 3.29%
Month-over-month change: 3.67%
Year-over-year change: 4.27%

Total U.S. foreclosure pre-sale inventory rate: 0.40%
Month-over-month change: -0.41%
Year-over-year change: -7.18%

Total U.S. foreclosure starts: 25,000       
Month-over-month change -20.45%
Year-over-year change: 4.81%

Monthly prepayment rate (SMM): 0.45%
Month-over-month change: -15.51%
Year-over-year change: -25.74%

Foreclosure sales: 6,400
Month-over-month change: -7.52%
Year-over-year change: -6.42%

Number of properties that are 30 or more days past due, but not in foreclosure: 1,749,000
Month-over-month change: 64,000
Year-over-year change: 96,000

Number of properties that are 90 or more days past due, but not in foreclosure: 455,000
Month-over-month change: 7,000
Year-over-year change: -132,000

Number of properties in foreclosure pre-sale inventory: 214,000
Month-over-month change: -1,000
Year-over-year change: -13,000

Number of properties that are 30 or more days past due or in foreclosure: 1,963,000
Month-over-month change: 64,000
Year-over-year change: 83,000

Top 5 States by Non-Current* Percentage

Mississippi:	7.92 %
Louisiana:	7.40 %
Alabama:	5.63 %
Indiana:	5.12 %
Pennsylvania:	5.04 %

Bottom 5 States by Non-Current* Percentage

California:	2.15 %
Idaho:	2.13 %
Montana:	2.05 %
Washington:	2.01 %
Colorado:	1.95 %

Top 5 States by 90+ Days Delinquent Percentage

Mississippi:	2.16 %
Louisiana:	1.85 %
Alabama:	1.46 %
Arkansas:	1.21 %
Georgia:	1.19 %

Top 5 States by 12-Month Change in Non-Current* Percentage

Rhode Island:	-9.28 %
Alaska:	- 6.73 %
Connecticut:	-4.36 %
District of Columbia:	-4.16 %
New York:	-3.99 %

Bottom 5 States by 12-Month Change in Non-Current* Percentage

Idaho:	16.65 %
South Dakota:	13.18 %
Hawaii:	13.10 %
Louisiana:	10.53 %
Arizona	8.98 %

*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.

Notes:

Totals are extrapolated based on ICE's McDash loan-level database of mortgage assets.

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 November 4, 2023.

For more information about gaining access to ICE's loan-level database, please send an email to Mortgage.Monitor@bkfs.com.

About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks to connect people to opportunity. We provide financial technology and data services across major asset classes that offer our customers access to mission-critical workflow tools that increase transparency and operational efficiencies. We operate exchanges, including the New York Stock Exchange, and clearing houses that help people invest, raise capital and manage risk across multiple asset classes. Our comprehensive fixed income data services and execution capabilities provide information, analytics and platforms that help our customers capitalize on opportunities and operate more efficiently. At ICE Mortgage Technology, we are transforming and digitizing the U.S. residential mortgage process, from consumer engagement through loan registration. Together, we transform, streamline and automate industries to connect our customers to opportunity.

Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located here. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading "Key Information Documents (KIDS)."

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on February 2, 2023. 

Category: ICE Mortgage Technology 

ICE-CORP

ICE Media Contact

Mitch Cohen
mitch.cohen@bkfs.com  
+1 704-890-8158

ICE Investor Contact:
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katia.gonzalez@ice.com
+1 (678) 981-3882

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SOURCE Intercontinental Exchange

FAQ

What is the national delinquency rate for September?

The national delinquency rate for September is 3.29%.

How does the delinquency rate compare to pre-pandemic levels?

The delinquency rate is 71 basis points below pre-pandemic levels.

What is the number of loans in active foreclosure in September?

The number of loans in active foreclosure in September is 214K, the lowest since March 2022 and 25% below pre-pandemic levels.

How much did foreclosure starts decline in September?

Foreclosure starts declined by -20.4% in September.

What is the prepay activity rate for September?

The prepay activity rate for September is 0.45%.