Black Knight: Mortgage Delinquencies Increased Slightly in February

From Black Knight: Black Knight’s First Look at February 2023 Mortgage Data: Prepayments Rebound from All-Time Low; Overall Mortgage Delinquencies Inch Up As 30-Days Late Payments Rise
• The national mortgage delinquency rate increased 7 basis points in February to 3.45%, but remains down 12.6% year over year

• Prepayment activity (SMM) inched up to 0.35% – breaking a four-month streak of record lows, with relief likely to extend as the spring homebuying season takes hold

• A 36K rise in overall delinquencies was driven by a nearly 65K increase in those just a single payment behind, while 60-day delinquencies fell by nearly 12K (-4.0%) and 90-day delinquencies fell by 17K (-3.0%)
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• Foreclosure starts decreased by 9% in the month to 29K, breaking a streak of increases, with starts remaining 19% below pre-pandemic levels
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• Active foreclosure inventory rose marginally (+2K) in the month, and is up 34K (+15%) from February 2022 despite remaining 15% below its pre-pandemic level

• February saw 7.1K foreclosure sales (completions) nationally, up 2.5% from the month prior
emphasis addedAccording to Black Knight’s First Look report, the percent of loans delinquent increased 2.0% in February compared to January and decreased 13% year-over-year.

Black Knight reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) was 3.45% in February, up from 3.38% the previous month.