BAM Key Details:

  • Black Knight, Inc. reported their “first look” at December 2022 month-end mortgage performance statistics from its loan-level database representing the bulk of the national mortgage market. 
  • Mortgage delinquencies were down 9% for the year, while prepayments reached a third consecutive record low.

Black Knight, Inc. reported their “first look” at month-end mortgage statistics for December 2022 from its loan-level database representing the bulk of the U.S. mortgage market.

According to its report, 2022 mortgage delinquencies were down 9% for the year, while prepayments reached a third consecutive record low.

Here’s what you need to know.

Highlights of the Black Knight report

The total U.S. mortgage loan delinquency rate—loans 30+ days past due but not in foreclosure—was 3.08% in December 2022. That figure is up seven basis points but still below its December 2021 level. 

  • Month-over-month change: 2.31%
  • Year-over-year change: -8.89%

The total U.S. foreclosure pre-sale inventory rate was 0.37%.

  • Month-over-month change: 0.71%
  • Year-over-year change: 53.47%

The total U.S. foreclosure starts hit 26,900, up roughly 15% month over month—the third consecutive increase—but still 30% below pre-pandemic levels. 

  • Month-over-month change: 14.96%
  • Year-over-year change: 556.10%

The monthly prepayment rate fell to 0.39%, with single-month mortality (SMM) reaching its third consecutive record low dating back to 2000 when Black Knight first started recording this metric. 

  • Month-over-month change: -2.72%
  • Year-over-year change: -76.14%

Foreclosure sales as a percentage of 90+ dropped to 0.52%. 

  • Month-over-month change: -5.78%
  • Year-over-year change: 76.26%

The number of U.S. properties that are 30-plus days past due but not in foreclosure increased by 40K (4.8%) to 1,653,000, while 60-day delinquencies remained flat. 

  • Month-over-month change: 41,000
  • Year-over-year change: -146,000

The number of properties 90-plus days past due but not in foreclosure dropped month over month to 545,000, despite an 8.7K increase in Florida in the wake of Hurricane Ian, thanks to 44 other states seeing a decline in serious delinquencies in December. 

  • Month-over-month change: -5,000
  • Year-over-year change: -401,000

The number of U.S. properties in foreclosure pre-sale inventory rose to 198,000. 

  • Month-over-month change: 2,000
  • Year-over-year change: 70,000

The number of properties 30-plus days past due or in foreclosure increased to 1,850,000. 

  • Month-over-month change: 42,000
  • Year-over-year change: -77,000

The foreclosure process started on 4.9% of seriously delinquent mortgage loans in December, up from a month before but still 46% below the rate of foreclosure starts in December 2019 before the pandemic. 

Active foreclosure inventory increased by 2.3% the same month, but foreclosure volumes remained relatively subdued throughout 2022 after the record lows of the previous year, thanks to widespread moratoriums and forbearance protections

Top 5 U.S. states by non-current* percentage

*Non-current totals and percentages combine foreclosures and delinquencies as part of active mortgage loans in each particular state. 

  • Mississippi: 6.87%
  • Louisiana: 6.33%
  • Oklahoma: 5.16%
  • West Virginia: 4.92%
  • Alabama: 4.91%

Bottom 5 U.S. states by non-current* percentage

  • Oregon: 2.10%
  • Colorado: 1.96%
  • California: 1.91%
  • Idaho: 1.89%
  • Washington: 1.69%

Top 5 states by 90-plus days delinquent percentage

  • Mississippi: 2.31%
  • Louisiana: 1.90%
  • Arkansas: 1.59%
  • Alabama: 1.57%
  • Maryland: 1.45%

Top 5 states by 6-month change in non-current* percentage

  • Alaska: -19.58%
  • New York: -5.24%
  • Hawaii: -4.12%
  • North Dakota: -0.78%
  • District of Columbia: 0.08 %

Bottom 5 states by 6-month change in non-current* percentage

  • Florida: 22.44%
  • Arizona: 18.78%
  • South Dakota: 14.95%
  • Wyoming: 14.49%
  • Idaho: 14.09 %

Top takeaways for real estate agents

Keep this data close and prepare to share it with clients wanting to know more about recent foreclosure data and what it means for them.

With so many consumers wanting to know if now is a good time to buy a home or sell the one they have, this data should be part of the conversation. Because, in many cases, it will be on the minds of prospective clients.

Anticipate what they need to know and, as much as possible, get the information they need before they even ask for it.