In Depth Analysis: CalculatedRisk Newsletter on Real Estate (Ad Free) Read it here.

Friday, February 23, 2024

ICE: Mortgage Delinquency Rate Decreased in January

by Calculated Risk on 2/23/2024 08:11:00 AM

From ICE (formerly Black Knight): ICE First Look at Mortgage Performance: Foreclosures Up but Delinquencies Improve as the Mortgage Market Kicks Off 2024

• In an expected rebound from December’s calendar-driven rise, the national delinquency rate dropped to 3.38% in January, the lowest since October, and flat from the same time last year

• Past-due mortgages were down across the board, as inflows and rolls to later stages of delinquency fell, while early- and late-stage delinquency cures improved

• Serious delinquencies (loans 90+ days past due but not in active foreclosure) were down 109K (-19%) year over year, with the population now at 470K

• Representing 7.2% of serious delinquencies, January’s 34K foreclosure starts – the most since April 2022 – marked a +43.3% month over month jump, driven in part by seasonal pressures

• The number of loans in active foreclosure rose 7K to 219K, but remained 23% below (-64K) pre-pandemic levels

• 6.6K foreclosure sales were completed nationally in January, a 23% increase from the previous month but in line with the monthly average for the preceding year

• While January’s jump in foreclosures is worth watching, serious delinquencies remain low, with 70% of such loans still protected from foreclosure, reducing near-term risk

• Prepayment activity rose marginally as easing interest rates in December and January provided a modest increase in refinance incentive and homebuyer demand
emphasis added
Note: that last column below is for the same month in 2019 to show the change from pre-pandemic levels.

ICE: Percent Loans Delinquent and in Foreclosure Process
In Foreclosure0.41%0.40%0.45%0.51%
Number of properties:
Number of properties
that are delinquent,
but not in foreclosure:
Number of properties
in foreclosure
pre-sale inventory:
Total Properties2,022,0002,120,0002,012,0002,210,000