Prepayment Activity

Delinquencies Rose Again In February, But Prepayment Activity Is Up

Posted on by TMN Editor
Delinquencies across the nation rose in February to 3.45% as economic pressures squeeze Americans, but remain down from last year, Black Knight reported. Black Knight’s First Look at February 2023 data found that delinquent loans that are only a single payment behind overwhelmingly accounted for the increase. The 36,000 delinquency rise was driven by a 65,000 increase in first-time missed payments. Delinquencies of 60 and 90 days both fell, down by 12,000 (-4%) and 17,000 (-3%) respectively. Nearly all fifty states saw their serious delinquencies improve. On the other end, foreclosure starts also improved, breaking a streak of increases with a 9% dip. Starts remain almost 20% below pre-pandemic levels. Active foreclosure inventory increased slightly and is up 15% from…

Prepayments Drop To 20-Year Low

Posted on by TMN Editor
Prepayment activity dropped to a nearly 22-year low in September as interest rates rose to nearly 7%. According to Black Knight’s September 2022 First Look. prepayment activity slid by 14.9% to a single-month mortality rate of 0.57% in September, besting January 2019’s record of 0.59%. It’s the lowest level since November 2000. Inflation is a factor in low prepayment activity, says Jacob Channel, LendingTree’s senior economic analyst.  “Since the start of the year, inflation has increased significantly and as a result, many households likely have less cash that they can allocate toward non-necessities like putting extra money toward their mortgage payment,” he told MarketWatch. Black Knight also reported that the national delinquency rate fell 0.2% from August to 2.78%. This…