ICE First Look: Mortgage Performance Remains Strong as Delinquencies, Foreclosures Continue to Improve in May

Rhea-AI Summary

Intercontinental Exchange (NYSE:ICE) released a detailed report on May 2024 mortgage performance. The national delinquency rate decreased to 3.04%, the second lowest ever recorded. Serious delinquencies, loans over 90 days past due but not in foreclosure, reached an 18-year low with a fifth consecutive monthly improvement. Single missed payments dropped by 19K, but 60-day delinquencies rose slightly. Foreclosure starts fell 6.5% from April, maintaining the lowest active foreclosure inventory since January 2022. Yearly foreclosure sales decreased by 7.2%, remaining well below pre-pandemic levels. Prepayments rose to their highest since September 2022 amid rising home sales and slightly improved refinancing volumes.

Positive

• National delinquency rate fell to 3.04%, the second lowest on record.
• Serious delinquencies reached an 18-year low with continuous monthly improvements.
• Foreclosure starts decreased by 6.5% from April.
• Active foreclosure inventory remains at the lowest level since January 2022.
• Prepayments increased to the highest level since September 2022.

Negative

• 60-day delinquencies slightly increased by 4K from April.
• Yearly foreclosure sales down 7.2%, staying below pre-pandemic norms.
• Number of delinquent loans curing to current status decreased.

• The national delinquency rate fell 6 basis points (bps) year over year to 3.04% in May; still the second lowest point on record, behind 2.92% in March 2023
• A fifth consecutive monthly improvement in serious delinquencies (those loans 90+ days past due, but not yet in active foreclosure) reset what had already been a more than 18-year low
• The number of mortgage-holders who’ve missed a single payment dropped by -19K, while 60-day delinquencies edged up slightly (+4K) from April
• While inflow of borrowers newly 30 days late dropped to a one-year low, those rolling to later stages of delinquency edged higher from April and fewer delinquent loans cured to current status
• Foreclosure starts were down -6.5% from April, keeping active foreclosure inventory at the lowest level since pandemic-era moratoria were lifted in January 2022
• The total number of mortgage-holders currently in active foreclosure remains 32% below (-92K) pre-pandemic levels
• Though up slightly for the month, foreclosure sales (completions) in May were down -7.2% year over year and remain well below pre-pandemic norms
• A seasonal rise in home sales and slightly improved refi volumes pushed prepayments to their highest level since September 2022, even as rate-related headwinds persist

ATLANTA & NEW YORK--(BUSINESS WIRE)-- Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, reports the following “first look” at May 2024 month-end mortgage performance statistics derived from its loan-level database representing the majority of the national mortgage market.

Data as of May 31, 2024

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 3.04%

Month-over-month change: -1.55%

Year-over-year change: -1.94%

Total U.S. foreclosure pre-sale inventory rate: 0.36%

Month-over-month change: -3.83%

Year-over-year change: -17.95%

Total U.S. foreclosure starts: 24,000

Month-over-month change -6.47%

Year-over-year change: -4.77%

Monthly prepayment rate (SMM): 0.58%

Month-over-month change: 10.45%

Year-over-year change: 6.60%

Foreclosure sales: 6,300

Month-over-month change: 6.26%

Year-over-year change: - 7.21%

Number of properties that are 30 or more days past due, but not in foreclosure: 1,634,000

Month-over-month change: -24,000

Year-over-year change: -5,000

Number of properties that are 90 or more days past due, but not in foreclosure: 410,000

Month-over-month change: -7,000

Year-over-year change: -38,000

Number of properties in foreclosure pre-sale inventory: 191,000

Month-over-month change: -7,000

Year-over-year change: -38,000

Number of properties that are 30 or more days past due or in foreclosure: 1,825,000

Month-over-month change: -31,000

Year-over-year change: -43,000

Top 5 States by Non-Current* Percentage
Mississippi:	7.41%
Louisiana:	7.25%
Alabama:	5.19%
Indiana:	4.77%
West Virginia:	4.68%
Bottom 5 States by Non-Current* Percentage
California:	1.97%
Idaho:	1.89%
Montana:	1.87%
Washington:	1.83%
Colorado:	1.83%
Top 5 States by 90+ Days Delinquent Percentage
Mississippi:	1.93%
Louisiana:	1.70%
Alabama:	1.41%
Arkansas:	1.19%
Georgia:	1.09%
Top 5 States by 12-Month Change in Non-Current* Percentage
Vermont:	-12.16%
Alaska:	-10.42%
New York:	-9.64%
New Hampshire:	-9.63%
New Mexico:	- 8.79%
Bottom 5 States by 12-Month Change in Non-Current* Percentage
Louisiana:	7.03%
South Dakota:	4.45%
Arizona:	2.28%
Nebraska:	1.80%
Arkansas:	1.48%

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

Notes:

1) Totals are extrapolated based on ICE’s McDash loan-level database of mortgage assets.
2) 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.icemortgagetechnology.com/resources/data-reports by July 1, 2024.

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 that connect people to opportunity. We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency. ICE’s futures, equity, and options exchanges – including the New York Stock Exchange – and clearing houses help people invest, raise capital and manage risk. We offer some of the world’s largest markets to trade and clear energy and environmental products. Our fixed income, data services and execution capabilities provide information, analytics and platforms that help our customers streamline processes and capitalize on opportunities. At ICE Mortgage Technology, we are transforming U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship. Together, ICE transforms, streamlines and automates 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, 2023, as filed with the SEC on February 8, 2024.

Category: Mortgage Technology

ICE-CORP

Source: Intercontinental Exchange

View source version on businesswire.com: https://www.businesswire.com/news/home/20240621604728/en/

ICE Media Contact

Mitch Cohen

mitch.cohen@bkfs.com

+1 704-890-8158

ICE Investor Contact:

Katia Gonzalez

katia.gonzalez@ice.com

+1 (678) 981-3882

Source: Intercontinental Exchange

FAQ

What is the national delinquency rate for May 2024 according to ICE?

The national delinquency rate for May 2024 was 3.04%.

How did serious delinquencies perform in May 2024?

Serious delinquencies, loans over 90 days past due but not in foreclosure, reached an 18-year low with a fifth consecutive monthly improvement.

What was the change in foreclosure starts from April 2024?

Foreclosure starts decreased by 6.5% from April 2024.

How has the active foreclosure inventory changed since January 2022?

The active foreclosure inventory has maintained the lowest level since pandemic-era moratoria were lifted in January 2022.

What is the trend in prepayments as of May 2024?

Prepayments rose to their highest level since September 2022 due to a seasonal rise in home sales and slightly improved refinancing volumes.

What was the month-over-month change in the total U.S. loan delinquency rate in May 2024?

The total U.S. loan delinquency rate decreased by 1.55% month-over-month in May 2024.

How did foreclosure sales in May 2024 compare year-over-year?

Foreclosure sales in May 2024 were down 7.2% year-over-year.

What is the current rate of foreclosure pre-sale inventory as of May 2024?

The total U.S. foreclosure pre-sale inventory rate was 0.36% as of May 2024.