11/23/2022
Prepayments Fall; Foreclosures Rise
According to Black Knight’s “first look” at October 2022 month-end mortgage performance data, prepayment fell to a record low of 0.48%, well below the previous record of 0.55% and the lowest since Black Knight began reporting this metric in 2000.
Looking at delinquencies, the national rate rose 4.5% to 2.91%, up 12 basis points from September, which was mostly driven by a 9.4% rise in 30-day delinquencies. Loans that were 60-days past due were up 2.9% in October while mortgages 90-days past due saw continued improvement over the last few months dropping 1.5%.
Florida led the nation in the 19,000 loan jump in early delinquencies, indicating early numbers of homeowners who stopped paying their mortgages due to damage or destruction from Hurricane Ian.
Foreclosure starts came in at 19,600—representing a 7% increase—but still remain 55% below numbers reported before the COVID-19 pandemic.
