Black Knight: Mortgage Delinquency Rate Increased in December; Prepayments at Record Low

From Black Knight: Black Knight’s First Look: Mortgage Delinquencies Closed 2022 Down 9% for the Year, While Prepayments Hit Third Consecutive Record Low
• The national delinquency rate inched up 7 basis points in the month to 3.08%, but finished the year 30 basis points (-9%) below its December 2021 level

• Prepayment activity fell to 0.39% – with single month mortality (SMM) hitting its third consecutive record low dating back to 2000 when Black Knight began reporting the metric

• Serious delinquencies (90+ days past due) continued to improve nationally despite an 8.7K rise in Florida in the wake of Hurricane Ian, with 44 other states seeing seriously past-due volumes decline in the month

• Borrowers 30 days late increased by 40K, up 4.8%, while 60-day delinquencies stayed flat

• Foreclosure starts increased by 15% in the month to 26,900 – the third consecutive increase, but still 30% below pre-pandemic levels

• Foreclosure was started on 4.9% of serious delinquencies in December, up from November, but still 46% below the start rate seen in December 2019 prior to the pandemic

• Active foreclosure inventory rose by 2.3% in the month, though volumes remained subdued throughout 2022 after the record lows of 2021 due to widespread moratoriums and forbearance protections
emphasis addedAccording to Black Knight’s First Look report, the percent of loans delinquent increased 2.3% in December compared to November and decreased 9% year-over-year.

Black Knight reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) was 3.08% in December, up from 3.01% in November.