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Prepayment Activity Falls to 20-Year Lows

According to Black Knight’sfirst look” at September 2022 month-end mortgage performance data, prepayment activity dropped by 14.9% to a single-month mortality rate of 0.57% over the course of the month, now at its lowest level since November 2000. 

In addition, the national delinquency rate inched down by two-tenths of a percentage point from August to 2.78%, just north of the record low set in May 22, as the bulk of past-due mortgages held relatively steady. 

The number of borrowers who are behind by a single payment rose by 1%, while those 90-days past due fell 1.5%, and foreclosure starts fell 9% from August to 18,400 starts, a number now 53% below pre-pandemic levels. 

By the numbers:

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 2.78% 

Month-over-month change: -0.18% 

Year-over-year change: -28.78% 

  

Total U.S. foreclosure pre-sale inventory rate: 0.35% 

Month-over-month change: 0.04% 

Year-over-year change: 35.52% 

  

Total U.S. foreclosure starts: 18,400 

Month-over-month change: -9.36% 

Year-over-year change: 371.79% 

  

Monthly prepayment rate (SMM): 0.57% 

Month-over-month change: -14.89% 

Year-over-year change: -73.33% 

  

Foreclosure sales as % of 90+: 0.60% 

Month-over-month change: 11.96% 

Year-over-year change: 100.62% 

  

Number of properties that are 30 or more days past due, but not in foreclosure: 1,491,000 

Month-over-month change: 2,000 

Year-over-year change: -577,000 

  

Number of properties that are 90 or more days past due, but not in foreclosure: 558,000 

Month-over-month change: -9,000 

Year-over-year change: -675,000 

  

Number of properties in foreclosure pre-sale inventory: 185,000 

Month-over-month change: 0 

Year-over-year change: 50,000 

  

Number of properties that are 30 or more days past due or in foreclosure: 1,677,000 

Month-over-month change: 3,000 

Year-over-year change: -526,000 

  

Top 5 States by Non-Current Percentage: 

Mississippi: 6.39 % 

Louisiana: 5.62 % 

Oklahoma: 4.68 % 

Alabama: 4.56 % 

West Virginia: 4.46 % 

  

Bottom 5 States by Non-Current Percentage: 

Oregon: 1.93 % 

Colorado: 1.79 % 

California: 1.78 % 

Idaho: 1.68 % 

Washington: 1.64 % 

  

Top 5 States by 90+ Days Delinquent Percentage: 

Mississippi: 2.39 % 

Louisiana: 1.95 % 

Alabama: 1.67 % 

Oklahoma: 1.54 % 

Arkansas: 1.51 % 

 

Top 5 States by 6-Month Change in Non-Current Percentage: 

Alaska: -24.31 % 

Hawaii: -23.06 % 

North Dakota: -15.09 % 

New York: -14.00 % 

District of Columbia: -10.19 % 

  

Bottom 5 States by 6-Month Change in Non-Current Percentage: 

South Dakota: 10.09 % 

Iowa: 8.39 % 

Arizona: 6.54 % 

Kansas: 6.28 % 

Wyoming: 4.99 % 

About Author: Kyle G. Horst

Kyle G. Horst is a reporter for DS News and MReport. A graduate of the University of Texas at Tyler, he has worked for a number of daily, weekly, and monthly publications in South Dakota and Texas. With more than 10 years of experience in community journalism, he has won a number of state, national, and international awards for his writing and photography including best newspaper design by the Associated Press Managing Editors Group and the international iPhone photographer of the year by the iPhone Photography Awards. He most recently worked as editor of Community Impact Newspaper covering a number of Dallas-Ft. Worth communities on a hyperlocal level. Contact Kyle G. at [email protected]
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