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Black Knight's First Look: Foreclosure Starts Hit 18-year Low in August; Mortgage Prepayments Continue to Rise in Lower Interest Rate Environment

September 23, 2019
- August's 36,200 foreclosure starts made for the lowest single-month total since December 2000
- The number of loans in active foreclosure inventory also fell; at 253,000, it's the fewest since 2005
- Prepayment activity -- typically a good indicator of refinance activity -- continues to press upward, increasing 5% from July to reach a three-year high
- August's prepayment rate was up 62% from the same time last year and 2.5 times the 18-year low hit in January
- Given a 30-45 day closing window, the month's prepayment activity reflects June/July interest rates; as rates fell further in August and September, the peak in refinance-driven prepayments is likely still to come

JACKSONVILLE, Fla., Sept. 23, 2019 /PRNewswire/ -- Black Knight, Inc. (NYSE:BKI) reports the following "first look" at August 2019 month-end mortgage performance statistics derived from its loan-level database representing the majority of the national mortgage market.

Black Knight, Inc. Logo (PRNewsfoto/Black Knight, Inc.)

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 3.45%
Month-over-month change: -0.15%
Year-over-year change: -1.49%

Total U.S. foreclosure pre-sale inventory rate: 0.48%
Month-over-month change: -2.42%
Year-over-year change: -11.46%

Total U.S. foreclosure starts: 36,200
Month-over-month change: -7.65%
Year-over-year change: -23.14%

Monthly prepayment rate (SMM): 1.50%
Month-over-month change: 5.45%
Year-over-year change: 61.77%

Foreclosure sales as % of 90+: 1.81%
Month-over-month change: 3.20%
Year-over-year change: -6.80%

Number of properties that are 30 or more days past due, but not in foreclosure: 1,813,000
Month-over-month change: 6,000
Year-over-year change: 4,000

Number of properties that are 90 or more days past due, but not in foreclosure: 444,000
Month-over-month change: 0
Year-over-year change: -62,000

Number of properties in foreclosure pre-sale inventory: 253,000
Month-over-month change: -5,000
Year-over-year change: -28,000

Number of properties that are 30 or more days past due or in foreclosure: 2,066,000
Month-over-month change: 1,000
Year-over-year change: -23,000

Top 5 States by Non-Current* Percentage

Mississippi:

10.31%

Louisiana:

7.71%

Alabama: 

6.67%

West Virginia:

6.33%

Arkansas: 

6.08%

 

Bottom 5 States by Non-Current* Percentage

California:

2.02%

Idaho:

2.00%

Washington: 

1.92%

Oregon: 

1.85%

Colorado: 

1.75%

 

Top 5 States by 90+ Days Delinquent Percentage

Mississippi:

3.12%

Alabama:

1.89%

Louisiana:

1.86%

Arkansas:

1.73%

Tennessee:

1.26%

 

Top 5 States by 6-Month Improvement in Non-Current* Percentage

California:

-22.22%

District of Columbia:

-20.73%

Hawaii:

-18.51%

Oregon: 

-17.05%

Washington: 

-16.63%

 

Top 5 States by 6-Month Deterioration in Non-Current* Percentage

Nebraska:

2.13%

Mississippi: 

1.50%

Iowa: 

0.29%

West Virginia: 

-1.39%

Arkansas:

-1.82%

*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.

Notes:

1) Totals are extrapolated based on Black Knight's loan-level database of mortgage assets.
2) All whole numbers are rounded to the nearest thousand, except foreclosure starts, which are rounded to the nearest hundred.

For a more detailed view of this month's "first look" data, please visit the Black Knight newsroom.

The company will provide a more in-depth review of this data in its monthly Mortgage Monitor report, which includes an analysis of data supplemented by detailed charts and graphs that reflect trend and point-in-time observations. The Mortgage Monitor report will be available online at https://www.blackknightinc.com/data-reports/ by Oct. 7, 2019.

For more information about gaining access to Black Knight's loan-level database, please send an email to Mortgage.Monitor@bkfs.com.

About Black Knight

Black Knight (NYSE:BKI) is a leading provider of integrated software, data and analytics solutions that facilitate and automate many of the business processes across the homeownership lifecycle.

As a leading fintech, Black Knight is committed to being a premier business partner that clients rely on to achieve their strategic goals, realize greater success and better serve their customers by delivering best-in-class software, services and insights with a relentless commitment to excellence, innovation, integrity and leadership. For more information on Black Knight, please visit www.blackknightinc.com.

For more information:




Michelle Kersch

Mitch Cohen

Black Knight, Inc. 

Black Knight, Inc.                                              

904.854.5043 

704.890.8158

michelle.kersch@bkfs.com

mitch.cohen@bkfs.com

 

 

 

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SOURCE Black Knight, Inc.

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