JANUARY 2020 REPORT
MORTGAGE MONITOR
Confidential, Proprietary and/or Trade Secret TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, and/or an affiliate. © 2020 Black Knight Financial Technology Solutions, LLC. All Rights Reserved.
MORTGAGE MONITOR
JANUARY 2020 | 2Confidential, Proprietary and/or Trade Secret TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, and/or an affiliate. © 2020 Black Knight Financial Technology Solutions, LLC. All Rights Reserved.
Each month, the Black Knight Mortgage Monitor looks at a variety of issues related to the mortgage finance and housing industries.
This month, as always, we begin with a review of some of the high-level mortgage performance statistics reported in our most recent First Look report, with an update on delinquency, foreclosure and prepayment trends. Next, we take a deeper dive into select January performance highlights, with a focus on record-low delinquencies, prepayment activity and refinance incentive in today’s low interest rate market.
Next, we revisit the state of the nation’s equity landscape as of Q4 2019, including a geographical breakdown of where equity is growing most strongly. We also dig into Q4 refinance origination metrics to get a sense of who exactly is tapping that equity. Finally, in light of the surge of rate-driven and cash-out refinance activity we’ve seen in recent months, we check back on servicer retention rates to get a sense of how well the industry is recapturing the business of refinancing borrowers.
In producing the Mortgage Monitor, Black Knight’s Data & Analytics division aggregates, analyzes and reports upon the most recently available data from the company’s vast mortgage and housing related data assets. Information is gathered from the McDash loan-level mortgage performance dataset, the Black Knight HPI and the company’s robust public property records database covering 99.9% of the U.S. population. For more information on gaining access to Black Knight’s data assets, please call 844-474-2537 or email [email protected].
JANUARY 2020 OVERVIEW
MORTGAGE MONITOR
JANUARY FIRST LOOK RELEASE
JANUARY PERFORMANCE HIGHLIGHTS
Q4 2019 EQUITY UPDATE
SERVICER RETENTION RATES
APPENDIX
DISCLOSURES
DEFINITIONS
3
4
10
12
17
20
21
CONTENTS
Confidential, Proprietary and/or Trade Secret TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, and/or an affiliate. © 2020 Black Knight Financial Technology Solutions, LLC. All Rights Reserved.
MORTGAGE MONITOR
JANUARY 2020 | 3
Here we have an overview of findings from Black Knight’s ‘First Look’ at January mortgage performance data. This information has been compiled from Black Knight’s McDash loan-level mortgage performance database. You may click on each chart to see its contents in high-resolution.
JANUARY 2020 FIRST LOOK RELEASE
January continued and improved upon December’s strong reduction in the national delinquency rate, which fell by more than 5% for the month to hit its lowest recorded level since Black Knight began tracking the data in 2000.
JANUARY OVERVIEW STATS
CHANGE IN DELINQUENCY RATE
Mortgage delinquencies hit their lowest level on record, dating back
to 2000
January’s 14%+ year-over-year decline was the strongest in more
than 12 months
NON-CURRENT RATE
The number of non-current loans (30+ days past due or in active foreclosure) fell below 2M for the first time since 2005
Falling nearly 14% year-over-year to 1.95M, non-current inventory is also
the lowest it’s been since March 2005
FORECLOSURE STARTS
Foreclosure starts edged up in January, but remain nearly 15%
below last year’s levels
The number of loans in active foreclosure remained relatively flat for the month and
were down 19K year-over-year
8.35%-4.68%-5.37%
Confidential, Proprietary and/or Trade Secret TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, and/or an affiliate. © 2020 Black Knight Financial Technology Solutions, LLC. All Rights Reserved.
MORTGAGE MONITOR
JANUARY 2020 | 4
Here, we take a deeper dive into select January performance highlights, with a focus on record-low delinquencies, prepayment activity and refinance incentive in today’s low interest rate market. This information has been compiled from Black Knight’s McDash loan-level mortgage performance database. You may click on each chart to see its contents in high-resolution.
JANUARY 2020 PERFORMANCE HIGHLIGHTS
» Mortgage delinquencies fell by 5.4% month-over month to the lowest level on record since Black Knight began reporting the metric in 2000
» At 3.22%, the national delinquency rate is down 14% from the same time last year
» With annual declines picking up in recent months and tax refund season on the horizon, we could see delinquencies push downward even further
» Historically speaking, delinquencies tend to fall in each of the first three months of the year, with the largest declines typically coming in March
» January’s decline was nearly twice the 20-year average seen for the month
» Delinquencies are now more than 1.5 percentage points below the 4.74% pre-crisis (2000-2005) seasonal average for the month of January
4.74%
3.22%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
11.00%
2000
-01
2001
-01
2002
-01
2003
-01
2004
-01
2005
-01
2006
-01
2007
-01
2008
-01
2009
-01
2010
-01
2011
-01
2012
-01
2013
-01
2014
-01
2015
-01
2016
-01
2017
-01
2018
-01
2019
-01
2020
-01
NATIONAL DELINQUENCY RATE – FIRST LIEN MORTGAGESDelinquency Rate 2000-2005 Average Record Low
NATIONAL DELINQUENCY RATE – FIRST LIEN MORTGAGES
-2.9% -2.2%
-10.6%
+3.2%
+0.7%
+2.9%
+0.6%
-0.2%
+5.1%
-2.1%
+4.4%
+1.6%
-14%
-9%
-4%
1%
6%
Janu
ary
Febr
uary
Mar
ch
Apr
il
May
June
July
Aug
ust
Sep
tem
ber
Oct
ober
Nov
embe
r
Dec
embe
r
AVERAGE MONTHLY CHANGE IN DELINQUENCY RATE(SINCE JANUARY 2000)
AVERAGE MONTHLY CHANGE IN DELINQUENCY RATE(SINCE JANUARY 2000)
Confidential, Proprietary and/or Trade Secret TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, and/or an affiliate. © 2020 Black Knight Financial Technology Solutions, LLC. All Rights Reserved.
MORTGAGE MONITOR
JANUARY 2020 | 5
JANUARY 2020 PERFORMANCE HIGHLIGHTS
» Both purchase mortgages and the market as a whole began to see increased early-stage delinquencies as interest rates rose throughout 2018
» Falling 30-year rates throughout 2019 helped ease affordability pressures and reduce average debt-to-income (DTI) ratios among purchase originations
» In the 12 months ending July 2019, an average 1.15% of purchase loans were delinquent after six months
» Overall early-stage refinance delinquency rates held steady at just under 1% through Q2/early-Q3 after rising steadily for much of the previous two years
» While early-stage delinquency rates among rate/term refinances have held relatively steady, those of cash-out refinances have pulled back slightly, as falling rates decrease the pay shock of first lien equity withdrawal
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
0.00%
0.25%
0.50%
0.75%
1.00%
1.25%
1.50%
1.75%
2.00%
201101
201107
201201
201207
201301
201307
201401
201407
201501
201507
201601
201607
201701
201707
201801
201807
201901
201907
FHLM
C 30-
Year
Fix
ed In
tere
st R
ate
Delin
quen
cy R
ate
6 M
onth
s Af
ter
Orig
inat
ion
Origination Month
DELINQUENCY RATE AT 6 MONTHS AFTER ORIGINATION(12 MONTH MOVING AVERAGE)
Average 30-Year Interest Rate Purchase Rate/Term Refi Cash-Out Refi Total MarketWith rates continuing to fall, the rise in early-stage purchase loan delinquencies has begun to slow
DELINQUENCY RATE AT 6 MONTHS AFTER ORIGINATION(12 MONTH MOVING AVERAGE)
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MORTGAGE MONITOR
JANUARY 2020 | 6
» Overall prepayment activity fell by 15.3% in January, despite refinance incentive holding steady for the final eight weeks of 2019
» The decline was uniform across most investor classes, with GSE, GNMA, and portfolio prepayments falling by 15-17% from December
» Prepays among legacy PLS loans fell 8% month-over-month, not unexpected given that these mortgages tend to be less reactive to interest rate movements
» Refinance-related prepayments accounted for 2/3 of the monthly decline, with rate/term prepayments falling by 14% month-over-month and cash-out-related prepays down 19% from December
» A seasonal decline in home sales accounted for the other 1/3 of the decline, with housing turnover prepays falling 22% month-over-month
» If historical trends hold true, housing turnover-related prepays should hold relatively steady through February before picking up noticeably in the peak home buying/selling season
» Rising refi incentive in recent weeks could also put upward pressure on prepayment speeds in coming months
29 20 18 14 17 17 17 21 18 25 21 18 16 12 11 9 9 7 7 8 6 7 5 6 9 15 17 24 35 29 49 56
69 83
63 62 53
28 23 24 21 24 24 23
28 25 30
28 26 24 21 23 21 21 19 19 20 17 19 15 16 15 16 19
22 25
23
29 34
37
45
37 38 31 26
25 39
39 51 56 49
51 40
41 36
35 26 26
38 42 50 55 51 50 36 39
34 32 23 24
35 41
50 50
52 48
38
41
35 36
28 7
7
9 7
8 8 7
7
8
10 8
9 8
8 10 8
8 9 8 11
8 9
8 8 8
8
9
9
10 8
9 9
8
9
9 10
11
6 6
6 6
6 6 5
6
5
6 5
5 4
4
5 5 5 6 4 5
4 4
3 4 3
3
4
4
3 3
3 3 3
3
2 3
3
-
20
40
60
80
100
120
140
160
180
20170
1
20170
2
20170
3
20170
4
20170
5
20170
6
20170
7
20170
8
20170
9
20171
0
20171
1
20171
2
20180
1
20180
2
20180
3
20180
4
20180
5
20180
6
20180
7
20180
8
20180
9
20181
0
20181
1
20181
2
20190
1
20190
2
20190
3
20190
4
20190
5
20190
6
20190
7
20190
8
20190
9
20191
0
20191
1
20191
2
20200
1
Pre
paym
ent R
ate
(SM
M) i
n B
PS
PREPAY ACTIVITY (SMM) BY CAUSE OF PREPAYMENT(36-MONTH DETAILED BREAKDOWN)
Rate/Term Refi Cash-out Refi Sale of Home Curtailment Default
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
2008
-01
2009
-01
2010
-01
2011
-01
2012
-01
2013
-01
2014
-01
2015
-01
2016
-01
2017
-01
2018
-01
2019
-01
2020
-01
PREPAYMENT RATE (SMM) BY INVESTOR / PRODUCTGSE FHA/VA Portfolio Private Securities Total Market
PREPAYMENT RATE (SMM) BY INVESTOR / PRODUCT PREPAY ACTIVITY (SMM) BY CAUSE OF PREPAYMENT(36-MONTH DETAILED BREAKDOWN)
JANUARY 2020 PERFORMANCE HIGHLIGHTS
Confidential, Proprietary and/or Trade Secret TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, and/or an affiliate. © 2020 Black Knight Financial Technology Solutions, LLC. All Rights Reserved.
MORTGAGE MONITOR
JANUARY 2020 | 7
» Sub-3.5% mortgage interest rates have increased refinance incentive noticeably in recent weeks
» Black Knight defines refinance candidates as 30-year mortgage holders who are current on their loans, have credit scores of 720 or higher, hold at least 20% equity in their homes, and who could cut their current interest rate by at least 0.75% via a refi
» The population of potential candidates jumped from fewer than 8M in mid-January to as many as 11.3M by early February, a 40% increase in just four weeks
» 11.1M candidates remained as of February 20th, representing an aggregate $2.95B per month in potential savings, setting the stage for an increase in both refinance and prepayment activity in March
» While 2018 vintage borrowers make up the largest volume of refinance candidates (1.67M), there are currently nine vintages with 500K or more refinance candidates
» Disregarding our LTV and credit score assumptions, which are conservative by design, there are 21.8M homeowners with current interest rates at least 0.75% above today's prevailing rate in the market today
834,000
341,000
395,000
287,000
279,000
203,000
686,000
821,000
723,000
452,000
617,000 916,000
590,000
406,000
1,017,000
1,665,000
899,000
<2004
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
DISTRIBUTION OF REFINANCE CANDIDATES BY VINTAGE
.0M
2.0M
4.0M
6.0M
8.0M
10.0M
12.0M
14.0M
3.00%
3.20%
3.40%
3.60%
3.80%
4.00%
4.20%
4.40%
4.60%
03.Jan 07.Feb 14.Mar 18.Apr 23.May 27.Jun 01.Aug 05.Sep 10.Oct 14.Nov 19.Dec 23.Jan 27.Feb
REFINANCE CANDIDATES BY WEEK VS. 30-YEAR FIXED RATESRefi Candidates (Right Axis) 30-Year Fixed Rate Freddie PMMS (Left Axis)
REFINANCE CANDIDATES BY WEEK VS. 30-YEAR FIXED RATES DISTRIBUTION OF REFINANCE CANDIDATES BY VINTAGE
JANUARY 2020 PERFORMANCE HIGHLIGHTS
Confidential, Proprietary and/or Trade Secret TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, and/or an affiliate. © 2020 Black Knight Financial Technology Solutions, LLC. All Rights Reserved.
MORTGAGE MONITOR
JANUARY 2020 | 8
JANUARY 2020 PERFORMANCE HIGHLIGHTS
» Should recent downward pressure on the 10-year U.S. treasury yields translate into further declines in the average 30-year rate, we could see refinance incentive hit a record high
» If rates fall to 3.375%, nearly 13M homeowners could likely both qualify for and benefit from a refinance
19.4
M
17.2
M
14.5
M
12.8
M
11.1
M
9.2M
7.7M
6.4M
5.4M
4.5M
3.5M
3.0M
2.7M
2.3M
2.0M
1.7M
1.6M
1.4M
1.1M
1.0M
.9M
3.00
0%
3.12
5%
3.25
0%
3.37
5%
3.50
0%
3.62
5%
3.75
0%
3.87
5%
4.00
0%
4.12
5%
4.25
0%
4.37
5%
4.50
0%
4.62
5%
4.75
0%
4.87
5%
5.00
0%
5.12
5%
5.25
0%
5.37
5%
5.50
0%
NUMBER OF REFINANCE CANDIDATES UNDER DIFFERENT 30-YEAR FIXED RATE SCENARIOS
(BASED ON FIRST LIEN MARKET MAKE-UP AS OF JANUARY 2020)The population of refinance candidates remains extremely sensitive to even the slightest rate movements
NUMBER OF REFINANCE CANDIDATES UNDER DIFFERENT 30-YEAR FIXED RATE SCENARIOS
(BASED ON FIRST LIEN MARKET MAKE-UP AS OF JANUARY 2020)
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MORTGAGE MONITOR
JANUARY 2020 | 9
Here, we revisit the state of the nation’s equity landscape as of Q4 2019, including a geographical breakdown of where equity is growing most strongly. We also dig into Q4 refinance origination metrics to get a sense of how that equity is being tapped. This information has been compiled from the Black Knight Home Price Index and the company’s McDash loan-level mortgage performance database. You may click on each chart to see its contents in high-resolution.
JANUARY 2020 Q4 2019 EQUITY UPDATE
» Tappable equity – the amount available for homeowners with mortgages to borrow against before reaching a maximum combined LTV of 80% – eased seasonally in Q4 2019
» Still, at $6.2T, tappable equity marked its highest year-end total on record
» The same falling interest rates that have reheated the housing market have also increased the rate of equity growth for the third consecutive quarter
» Tappable equity grew 9.0% year-over-year in Q4 2019, the highest such growth rate since Q3 2018
» There are currently 44.7M homeowners with equity available to tap via cash-out refinance or home equity line of credit (HELOC)
» The average homeowner holds $119K in tappable equity, up $8400 from the same time last year
» Total debt on mortgaged U.S. residential properties is equivalent to 52% of the associated homes' values; up slightly from a trough of 51.4% in the summer of 2019, but down from 53% one year ago
+16.5%
+9.0%
+0.0%
+5.0%
+10.0%
+15.0%
+20.0%
+25.0%
2016-09
2016-12
2017-03
2017-06
2017-09
2017-12
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
ANNUAL GROWTH RATE OF TAPPABLE EQUITY
$4,285
$4,914
$4,627
$3,755
$2,830
$2,603
$2,370
$2,234
$2,557
$3,123
$3,557
$4,122
$4,690
$5,425
$5,806
$6,061
$5,943
$5,714
$5,982
$6,317
$6,238
$6,227
$
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
2004-12
2005-12
2006-12
2007-12
2008-12
2009-12
2010-12
2011-12
2012-12
2013-12
2014-12
2015-12
2016-12
2017-12
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
Tapp
able
Equ
ity in
$Bi
llion
s
TAPPABLE EQUITY OF U.S. MORTGAGE HOLDERS
Tappable Equity: Equity available on all residential properties with an existing mortgage before reaching a current CLTV of 80%
ANNUAL GROWTH RATE OF TAPPABLE EQUITYTAPPABLE EQUITY OF U.S. MORTGAGE HOLDERS
Tappable Equity: Equity available on all residential properties with an existing mortgage before reaching a current CLTV of 80%
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MORTGAGE MONITOR
JANUARY 2020 | 10
JANUARY 2020 Q4 2019 EQUITY UPDATE
» Tappable equity increased year-over-year in all 100 of the nation's largest markets in Q4 2019
» San Jose, where equity fell 7% year-over-year in Q3, has begun to level out, with equity increasing by a modest 1% from Q4 2018
» Some of the largest annual increases were in Midwest and Northeast markets
» Tappable equity in Buffalo, NY; Cincinnati, OH; Columbus, OH; and Memphis, TN all saw greater than 20% increases
» Some of the nation's once-hottest housing markets, saw tappable equity increase less than 5% including San Jose, Houston, Denver, Dallas and San Francisco
» Still, the West Coast remains equity-rich, with California holding 36% of the country’s total tappable equity
» Los Angeles, San Francisco, and San Jose rank first, second and fourth, respectively, in terms of markets with the highest equity
» Nearly 50% of the nation's total tappable equity is held within the 10 most equity-rich markets
TAPPABLE EQUITY BY CBSA – Q4 2019GREEN = MARKETS WHERE TAPPABLE EQUITY HAS DECLINED OVER PAST 12 MONTHS
$523B
$427B
$195B
$190B
$126B
$821B
$277B
$95B
$113B
$129B
$192B$142B
$110B
TAPPABLE EQUITY BY CBSA – Q4 2019GREEN = MARKETS WHERE TAPPABLE EQUITY HAS DECLINED OVER PAST 12 MONTHS
$129B
$142B
$173B
$190B
$192B
$195B
$277B
$427B
$523B
$821B
$B $200B $400B $600B $800B
Los Angeles, CA
San Francisco, CA
San Jose, CA
Washington, DC
Chicago, IL
Seattle, WA
San Diego, CA
Boston, MA
Dallas, TX
TAPPABLE EQUITY COMPARISON BY CBSA(TOP 10 CBSAs BY TAPPABLE EQUITY VOLUME)
2019-Q4 2018-Q4
New York-Newark, NY-NJ
Tappable Equity: Equity available on all residential properties with an existing mortgage before reaching a current CLTV of 80%Tappable Equity: Equity available on all residential properties with an existing mortgage before reaching a current CLTV of 80%
$B $200B $400B $600B $800B
$129B
$142B
$173B
$190B
$192B
$195B
$277B
$427B
$523B
$821BLos Angeles, CA
San Francisco, CA
Washington, DC
Chicago, IL
Seattle, WA
San Diego, CA
Boston, MA
Dallas, TX
San Jose, CA
New York-Newark, NY-NJ
TAPPABLE EQUITY COMPARISON BY CBSA(TOP 10 CBSAs BY TAPPABLE EQUITY VOLUME)
2019-Q4 2018-Q4
$145B
$166B
$190B
$194B
$211B
$262B
$287B
$340B
$347B
$2,248B
$B $500B $1,000B $1,500B $2,000B $2,500B
Virginia
Massachusetts
New Jersey
Illinois
Colorado
Washington
New York
Texas
Florida
California
TAPPABLE EQUITY COMPARISON BY STATE(TOP 10 STATES BY TAPPABLE EQUITY VOLUME)
2019-Q4 2018-Q4
$145B
$166B
$190B
$194B
$211B
$262B
$287B
$340B
$347B
$2,248BCalifornia
Florida
Washington
Colorado
Illinois
New Jersey
Massachusetts
Virginia
New York
Texas
TAPPABLE EQUITY COMPARISON BY STATE(TOP 10 STATES BY TAPPABLE EQUITY VOLUME)
$B $500B $1,000B $1,500B $2,000B $2,500B
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MORTGAGE MONITOR
JANUARY 2020 | 11
» Approximately 75% of homeowners with tappable equity have current interest rates at or above the prevailing 30-year rate, making the utilization of that equity potentially more attractive
» The average opening rate on a HELOC in Q4 2019 was 6.2%, a full 2.5% higher than the average 30-year rate reported by FHLMC for the quarter of 3.7%
» Further, 30-year rates are currently a full 20BPS lower than their Q4 average, potentially widening that gap and sustaining the headwinds facing the HELOC market throughout 2019
» Given the distribution of equity holders and current rate offerings, it's likely that homeowners looking to utilize their home equity will continue to lean on cash-out refi products in early 2020
6.21%
3.7%
2.51%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
2012
-1
2012
-2
2012
-3
2012
-4
2013
-1
2013
-2
2013
-3
2013
-4
2014
-1
2014
-2
2014
-3
2014
-4
2015
-1
2015
-2
2015
-3
2015
-4
2016
-1
2016
-2
2016
-3
2016
-4
2017
-1
2017
-2
2017
-3
2017
-4
2018
-1
2018
-2
2018
-3
2018
-4
2019
-1
2019
-2
2019
-3
2019
-4
Origination Quarter
AVERAGE INTEREST RATE AT ORIGINATION2nd Lien HELOC 30-YR Fixed Rate (FHLMC) Delta Between 30-YR and HELOC
Source: Freddie Mac PMMS; McDash Home Equity Database
$0B
$200B
$400B
$600B
$800B
$1,000B
$1,200B
Below 3%
3.00-3.24%
3.25-3.49%
3.50-3.74%
3.75-3.99%
4.00-4.24%
4.25-4.49%
4.50-4.74%
4.75-4.99%
5.00-5.24%
5.25-5.49%
5.50-5.74%
5.75-5.99%
6.00-6.24%
6.25-6.49%
6.50-6.74%
6.75-6.99%
7%andAbo
ve
DISTRIBUTION OF TAPPABLE EQUITY(BY FIRST LIEN INTEREST RATE)
More than 75% of Tappable Equity Holders have current interest rates of 3.5% of higher
DISTRIBUTION OF TAPPABLE EQUITY(BY FIRST LIEN INTEREST RATE)
AVERAGE INTEREST RATE AT ORIGINATION
Source: Freddie Mac PMMS; McDash Home Equity Database
More than 75% of Tappable Equity Holders have current interest rates of 3.5% or higher
JANUARY 2020 Q4 2019 EQUITY UPDATE
Confidential, Proprietary and/or Trade Secret TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, and/or an affiliate. © 2020 Black Knight Financial Technology Solutions, LLC. All Rights Reserved.
MORTGAGE MONITOR
JANUARY 2020 | 12
» After hitting an 18-year low in Q4 2018, refinance lending rose 250% year-over-year to hit a 6.5-year high in Q4 2019
» While rate/term refinance activity drove the bulk of the increase, growing equity and falling rates also pushed cash-out refinance lending to a more than 10-year high
» Approximately 600K homeowners pulled $41 billion in equity via cash-outs in Q4, the largest such volume since mid-2009
» With rates falling below 3.5% in early 2020, cash-out refinance activity is likely to remain strong in coming months
» Cash-out origination volumes have increased in each of the past three quarters
» However, outsized growth in rate/term lending has suppressed the cash-out share of refinance lending, which edged below 50% in Q4 2019 for the first time in three years
$B
$20B
$40B
$60B
$80B
$100B
$120B
2005
-Q2
2005
-Q4
2006
-Q2
2006
-Q4
2007
-Q2
2007
-Q4
2008
-Q2
2008
-Q4
2009
-Q2
2009
-Q4
2010
-Q2
2010
-Q4
2011
-Q2
2011
-Q4
2012
-Q2
2012
-Q4
2013
-Q2
2013
-Q4
2014
-Q2
2014
-Q4
2015
-Q2
2015
-Q4
2016
-Q2
2016
-Q4
2017
-Q2
2017
-Q4
2018
-Q2
2018
-Q4
2019
-Q2
2019
-Q4
Firs
t Lie
n Re
finan
ce O
rigin
atio
ns in
Mill
ions
EQUITY WITHDRAWN VIA CASH-OUT REFINANCE(INCLUDES 2ND MORTGAGE AND HELOC CONSOLIDATION)
82%
49%
0%
20%
40%
60%
80%
100%
0.0
0.5
1.0
1.5
2.0
2005
-Q2
2005
-Q3
2005
-Q4
2006
-Q1
2006
-Q2
2006
-Q3
2006
-Q4
2007
-Q1
2007
-Q2
2007
-Q3
2007
-Q4
2008
-Q1
2008
-Q2
2008
-Q3
2008
-Q4
2009
-Q1
2009
-Q2
2009
-Q3
2009
-Q4
2010
-Q1
2010
-Q2
2010
-Q3
2010
-Q4
2011
-Q1
2011
-Q2
2011
-Q3
2011
-Q4
2012
-Q1
2012
-Q2
2012
-Q3
2012
-Q4
2013
-Q1
2013
-Q2
2013
-Q3
2013
-Q4
2014
-Q1
2014
-Q2
2014
-Q3
2014
-Q4
2015
-Q1
2015
-Q2
2015
-Q3
2015
-Q4
2016
-Q1
2016
-Q2
2016
-Q3
2016
-Q4
2017
-Q1
2017
-Q2
2017
-Q3
2017
-Q4
2018
-Q1
2018
-Q2
2018
-Q3
2018
-Q4
2019
-Q1
2019
-Q2
2019
-Q3
2019
-Q4
Cash
-out
Sha
re o
f Firs
t Lie
n Re
fis (B
y Co
unt)
Firs
t Lie
n Re
finan
ce O
rigin
atio
ns in
Mill
ions
FIRST LIEN REFINANCE ACTIVITYCash-out Refi Originations (Left Axis) Rate/Term Refi Originations Cash-out Share of First Lien Refis (Right Axis)
EQUITY WITHDRAWN VIA CASH-OUT REFINANCE(INCLUDES 2ND MORTGAGE AND HELOC CONSOLIDATION)
FIRST LIEN REFINANCE ACTIVITY
JANUARY 2020 Q4 2019 EQUITY UPDATE
Confidential, Proprietary and/or Trade Secret TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, and/or an affiliate. © 2020 Black Knight Financial Technology Solutions, LLC. All Rights Reserved.
MORTGAGE MONITOR
JANUARY 2020 | 13
» While cash-out refinances collectively increased by 13% from 2018 to 2019, they actually declined by a collective 13% among homeowners who bought or last refinanced in 2013 or prior
» At the same time, cash-outs increased by 85% among homeowners who took out their mortgages in 2014 or later
» The most pronounced increases were seen among homeowners who had previously taken out their mortgage in 2016, 2017 or 2018 refis of which were up by 58%, 138%, and 1700% respectively
» The limited (or, indeed, negative) growth in cash-outs among homeowners who purchased at or near the bottom of the housing market in 2011-2013 is particularly interesting, given they’ve seen the greatest equity growth in recent years
8K 18K36K 33K
16K 9K40K 39K 33K 45K 36K 22K 31K 38K 33K 33K12K
26K 22K
32K24K
27K20K
57K85K 92K
159K140K
92K112K
121K 121K97K
8K
9K
14K
14K
13K
21K22K 20K
25K
-
50,000
100,000
150,000
200,000
250,000
2002
& P
rior
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
BREAKDOWN OF 2019 CASH-OUT REFINANCES (BY PRIOR LOAN INVESTORY AND VINTAGE)
Private/Other GNMA GSE Portfolio
11K 23K48K 40K
18K 10K40K 43K 36K 45K 36K
21K 23K 22K 14K21K
41K 34K
48K38K
47K30K
63K90K 101K
143K141K
86K 87K 77K
50K
10K
11K
14K18K
12K 19K15K
-
50,000
100,000
150,000
200,000
250,000
2002
& Pr
ior
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
BREAKDOWN OF 2018 CASH-OUT REFINANCES (BY PRIOR LOAN INVESTORY AND VINTAGE)
Private/Other GNMA GSE Portfolio
BREAKDOWN OF 2018 CASH-OUT REFINANCES(BY PRIOR LOAN INVESTORY AND VINTAGE)
BREAKDOWN OF 2019 CASH-OUT REFINANCES(BY PRIOR LOAN INVESTORY AND VINTAGE)
JANUARY 2020 Q4 2019 EQUITY UPDATE
Confidential, Proprietary and/or Trade Secret TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, and/or an affiliate. © 2020 Black Knight Financial Technology Solutions, LLC. All Rights Reserved.
MORTGAGE MONITOR
JANUARY 2020 | 14
» In Q4 2019, approximately 76% of homeowners were either able to keep their interest rate the same or, in many cases, significantly decrease their interest rate through cash-out refinance, the largest such share since Q4 2016
» This includes 50% who decreased their interest rate by at least 0.50% and 25% who decreased their rate by 1% or more
» Such improvements in rates may be contributing to slight declines in early-stage delinquencies of cash-out refinancers
» For comparison, a year ago, when 30-year rates were at or above 4.75%, fewer than 1/3 of cash-out refinancers saw rate improvements through refinancing
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Shar
e of
All
Cash
-out
Ref
inan
ce O
rigin
atio
ns
Origination Quarter
RATE INCREASE/DECREASE ON CASH-OUT REFINANCESRate Increase Down 0%-0.49% Down 0.50%-0.99% Down 1.00%-1.49% Down 1.5%+ As interest rates fell throughout 2019, an
increasing share of homeowners reduced their interest rates as part of the cash-out transaction, helping to offset some of the cost of borrowing against their equity
RATE INCREASE/DECREASE ON CASH-OUT REFINANCES
JANUARY 2020 Q4 2019 EQUITY UPDATE
Confidential, Proprietary and/or Trade Secret TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, and/or an affiliate. © 2020 Black Knight Financial Technology Solutions, LLC. All Rights Reserved.
MORTGAGE MONITOR
JANUARY 2020 | 15
» Despite a surge in refinance lending driven by low rates, servicers continue to struggle to recapture refinancing borrowers, with only one in five being retained by servicers in Q4 2019
» Retention rates among cash-out refinances fell from 19% in Q3 to only 17% in Q4, the lowest in more than four years
» Fewer than one in four borrowers refinancing to lower their rate or term – business which has been historically easier to retain – stayed with their servicer post-refinance in Q4
17%
24%20%
0%
10%
20%
30%
40%
50%
60%
70%
2005
-Q4
2006
-Q1
2006
-Q2
2006
-Q3
2006
-Q4
2007
-Q1
2007
-Q2
2007
-Q3
2007
-Q4
2008
-Q1
2008
-Q2
2008
-Q3
2008
-Q4
2009
-Q1
2009
-Q2
2009
-Q3
2009
-Q4
2010
-Q1
2010
-Q2
2010
-Q3
2010
-Q4
2011
-Q1
2011
-Q2
2011
-Q3
2011
-Q4
2012
-Q1
2012
-Q2
2012
-Q3
2012
-Q4
2013
-Q1
2013
-Q2
2013
-Q3
2013
-Q4
2014
-Q1
2014
-Q2
2014
-Q3
2014
-Q4
2015
-Q1
2015
-Q2
2015
-Q3
2015
-Q4
2016
-Q1
2016
-Q2
2016
-Q3
2016
-Q4
2017
-Q1
2017
-Q2
2017
-Q3
2017
-Q4
2018
-Q1
2018
-Q2
2018
-Q3
2018
-Q4
2019
-Q1
2019
-Q2
2019
-Q3
2019
-Q4
SERVICER RETENTION RATE OF REFINANCE TRANSACTIONSCash-out Refinances Rate/Term Refinances All Refinance Retention rates rose along with refinance
volumes early last year, hitting an 18-month high in Q2 2019, but have since fallen in each of the past two quarters
SERVICER RETENTION RATE OF REFINANCE TRANSACTIONS
Here, in light of the surge of rate-driven and cash-out refinance activity we’ve seen in recent months, we check back on servicer retention rates to get a sense of how well the industry is recapturing the business of refinancing borrowers. This information has been compiled from Black Knight’s McDash loan-level mortgage performance database. You may click on each chart to see its contents in high-resolution.
JANUARY 2020 SERVICER RETENTION RATES
Confidential, Proprietary and/or Trade Secret TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, and/or an affiliate. © 2020 Black Knight Financial Technology Solutions, LLC. All Rights Reserved.
MORTGAGE MONITOR
JANUARY 2020 | 16
JANUARY 2020 SERVICER RETENTION RATES
» Much of early-2019's improvement in rate/term retention rates was driven by the strong retention - and a growing share - of 2018 vintage borrowers
» As 30-year rates began to fall in early 2019, homeowners who took out their mortgages in 2018, when rates were at 7-year highs, flocked to the market to refinance into lower rates
» By Q2 2019, 2018 vintage borrowers made up nearly 25% of all refinances and over half of all rate/term transactions
» Having recently worked with these homeowners, servicers did a far better job of generating repeat business, retaining some 38% of 2018 vintage borrowers refinancing in Q2 2019
» By Q4 though, 2018 vintage mortgage-holders made up a lesser share of refinance originations, more time had passed since their original transactions, and retention of those borrowers fell to 29% by Q4
» If we exclude 2018 vintage refinances, retention has actually slightly improved in recent quarters among other vintages, although it remains muted compared to that of 2018 vintage loans
0%
10%
20%
30%
40%
50%
60%
2018
-Q1
2018
-Q2
2018
-Q3
2018
-Q4
2019
-Q1
2019
-Q2
2019
-Q3
2019
-Q4
BORROWERS REFINANCING OUT OF 2018 VINTAGE LOANSShare of Rate/Term Refis Share of All Refis Retention Rate
21%24%
0%
10%
20%
30%
40%
50%
60%
70%
2005
-Q2
2005
-Q4
2006
-Q2
2006
-Q4
2007
-Q2
2007
-Q4
2008
-Q2
2008
-Q4
2009
-Q2
2009
-Q4
2010
-Q2
2010
-Q4
2011
-Q2
2011
-Q4
2012
-Q2
2012
-Q4
2013
-Q2
2013
-Q4
2014
-Q2
2014
-Q4
2015
-Q2
2015
-Q4
2016
-Q2
2016
-Q4
2017
-Q2
2017
-Q4
2018
-Q2
2018
-Q4
2019
-Q2
2019
-Q4
SERVICER RETENTION RATE OF RATE/TERM REFINANCES Excluding 2018 Vintage All Vintages
SERVICER RETENTION RATE OF RATE/TERM REFINANCES BORROWERS REFINANCING OUT OF 2018 VINTAGE LOANS
Confidential, Proprietary and/or Trade Secret TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, and/or an affiliate. © 2020 Black Knight Financial Technology Solutions, LLC. All Rights Reserved.
MORTGAGE MONITOR
JANUARY 2020 | 17
JANUARY 2020 SERVICER RETENTION RATES
» Comparing interest rates received by retained borrowers to those received by borrowers lost to the market can provide further retention insights
» Looking at refinances up through Q4 2019, results suggest that interest rate pricing may also be a factor in recent retention challenges
» In the above example, we’ve narrowed the scope to borrowers with 720+ credit scores securing 30-year fixed rate, GSE, rate/term refinances; although a similar expansion can also be seen when reviewing the market as a whole
» On average, borrowers who left for ‘greener pastures’ received a 0.08% lower interest rate than those that were retained
» This was an increase from the 0.01% better rate that defecting borrowers were receiving at the same time last year
» While the interest rate deltas between retained and lost borrowers remain modest, they certainly serve to demonstrate the need for tools to ensure rate pricing is as competitive as possible
-0.30%
-0.25%
-0.20%
-0.15%
-0.10%
-0.05%
0.00%
0.05%
0.10%
2005
-Q2
2005
-Q3
2005
-Q4
2006
-Q1
2006
-Q2
2006
-Q3
2006
-Q4
2007
-Q1
2007
-Q2
2007
-Q3
2007
-Q4
2008
-Q1
2008
-Q2
2008
-Q3
2008
-Q4
2009
-Q1
2009
-Q2
2009
-Q3
2009
-Q4
2010
-Q1
2010
-Q2
2010
-Q3
2010
-Q4
2011
-Q1
2011
-Q2
2011
-Q3
2011
-Q4
2012
-Q1
2012
-Q2
2012
-Q3
2012
-Q4
2013
-Q1
2013
-Q2
2013
-Q3
2013
-Q4
2014
-Q1
2014
-Q2
2014
-Q3
2014
-Q4
2015
-Q1
2015
-Q2
2015
-Q3
2015
-Q4
2016
-Q1
2016
-Q2
2016
-Q3
2016
-Q4
2017
-Q1
2017
-Q2
2017
-Q3
2017
-Q4
2018
-Q1
2018
-Q2
2018
-Q3
2018
-Q4
2019
-Q1
2019
-Q2
2019
-Q3
2019
-Q4
INTEREST RATE DELTA BETWEEN RETAINED AND LOST LOANS(FUTURE LOAN = GSE, 30 YEAR FIXED, RATE/TERM REFI, 720+ CREDIT SCORE)
0.02
0.025
0.03
0.035
0.04
0.045
0.05
0.055
0.06
0.065
0.07
2005
-Q2
2005
-Q4
2006
-Q2
2006
-Q4
2007
-Q2
2007
-Q4
2008
-Q2
2008
-Q4
2009
-Q2
2009
-Q4
2010
-Q2
2010
-Q4
2011
-Q2
2011
-Q4
2012
-Q2
2012
-Q4
2013
-Q2
2013
-Q4
2014
-Q2
2014
-Q4
2015
-Q2
2015
-Q4
2016
-Q2
2016
-Q4
2017
-Q2
2017
-Q4
2018
-Q2
2018
-Q4
2019
-Q2
2019
-Q4
AVERAGE INTEREST RATE POST-REFINANCE(FUTURE LOAN = GSE, 30 YEAR FIXED, RATE/TERM REFI, 720+ CREDIT SCORE)
Retained in Portfolio Lost to Market
AVERAGE INTEREST RATE POST-REFINANCE(FUTURE LOAN = GSE, 30 YEAR FIXED, RATE/TERM REFI, 720+ CREDIT SCORE)
INTEREST RATE DELTA BETWEEN RETAINED AND LOST LOANS(FUTURE LOAN = GSE, 30 YEAR FIXED, RATE/TERM REFI, 720+ CREDIT SCORE)
Confidential, Proprietary and/or Trade Secret TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, and/or an affiliate. © 2020 Black Knight Financial Technology Solutions, LLC. All Rights Reserved.
MORTGAGE MONITOR
JANUARY 2020 | 18
Jan-20 Monthly Change
YTD Change
Yearly Change
Delinquencies 3.22% -5.37% 0.00% -14.17%
Foreclosure 0.46% 0.41% 0.00% -9.24%
Foreclosure Starts 42,800 8.35% 0.00% -14.74%
Seriously Delinquent (90+) or in Foreclosure 1.25% -1.11% 0.00% -15.38%
New Originations (data as of Dec-19) 763K 8.0% 0.0% 69.2%
Jan-20 Dec-19 Nov-19 Oct-19 Sep-19 Aug-19 Jul-19 Jun-19 May-19 Apr-19 Mar-19 Feb-19 Jan-19
Delinquencies 3.22% 3.40% 3.53% 3.39% 3.53% 3.45% 3.46% 3.73% 3.36% 3.47% 3.65% 3.89% 3.75%
Foreclosure 0.46% 0.46% 0.47% 0.48% 0.48% 0.48% 0.49% 0.50% 0.49% 0.50% 0.51% 0.51% 0.51%
Foreclosure Starts 42,800 39,500 33,500 43,900 39,400 36,200 39,200 40,100 39,000 41,400 39,700 40,400 50,200
Seriously Delinquent (90+) or in Foreclosure 1.25% 1.27% 1.30% 1.31% 1.32% 1.33% 1.34% 1.37% 1.37% 1.40% 1.45% 1.47% 1.48%
New Originations 763K 706K 824K 765K 760K 722K 660K 681K 600K 519K 418K 384K
3.75
%
3.89
%
3.65
%
3.47
%
3.36
%
3.73
%
3.46
%
3.45
%
3.53
%
3.39
%
3.53
%
3.40
%
3.22
%
Jan-1
9
Feb-19
Mar-19
Apr-19
May-19
Jun-1
9Ju
l-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-2
0
TOTAL DELINQUENCIES
384K
418K 51
9K 600K 68
1K
660K
722K
760K
765K
824K
706K
763K
Jan-1
9
Feb-19
Mar-19
Apr-19
May-19
Jun-1
9Ju
l-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
NEW ORIGINATIONS
JANUARY 2020 DATA SUMMARY
JANUARY 2020 APPENDIX
Confidential, Proprietary and/or Trade Secret TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, and/or an affiliate. © 2020 Black Knight Financial Technology Solutions, LLC. All Rights Reserved.
MORTGAGE MONITOR
JANUARY 2020 | 19
Month TOTAL ACTIVE COUNT 30 DAYS 60 DAYS 90+ DAYS FC Total NC FC Starts Average Days
Delinquent for 90+Average Days
Delinquent for FCRatio of 90+ to
FC
1/31/05 47,706,128 1,197,062 339,920 458,719 276,745 2,272,446 50,922 242 324 165.8%1/31/06 50,900,620 1,242,434 387,907 542,378 258,613 2,431,332 76,477 207 308 209.7%1/31/07 53,900,458 1,425,030 468,441 551,439 393,973 2,838,883 117,419 203 267 140.0%1/31/08 55,478,782 1,743,420 676,266 950,639 813,560 4,183,885 195,033 190 256 116.8%1/31/09 55,788,441 2,001,314 932,436 1,878,981 1,321,029 6,133,760 250,621 193 323 142.2%1/31/10 55,098,009 1,945,589 903,778 2,972,983 2,068,572 7,890,922 292,308 253 418 143.7%1/31/11 53,861,778 1,750,601 746,634 2,078,130 2,245,250 6,820,615 277,374 333 527 92.6%1/31/12 52,687,781 1,592,463 652,524 1,796,698 2,205,818 6,247,503 223,394 395 666 81.5%1/31/13 51,229,692 1,464,583 587,661 1,551,415 1,742,689 5,346,348 156,654 460 803 89.0%1/31/14 50,380,779 1,341,074 529,524 1,278,955 1,213,046 4,362,599 97,467 486 935 105.4%1/31/15 50,412,744 1,238,453 465,849 1,060,002 884,901 3,649,204 93,280 509 1,031 119.8%1/31/16 50,754,010 1,300,564 444,962 832,265 660,056 3,237,847 72,021 494 1,047 126.1%1/31/17 51,159,681 1,110,977 390,341 665,258 481,613 2,648,190 70,568 454 1,012 138.1%1/31/18 51,428,922 1,085,065 413,313 708,248 337,351 2,543,976 62,470 364 931 209.9%1/31/19 51,896,438 1,074,044 367,750 503,655 264,875 2,210,325 50,196 391 830 190.1%1/31/20 52,999,009 954,154 332,534 418,662 245,517 1,950,866 42,834 338 838 170.5%
LOAN COUNTS AND AVERAGE DAYS DELINQUENT
JANUARY 2020 APPENDIX
Confidential, Proprietary and/or Trade Secret TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, and/or an affiliate. © 2020 Black Knight Financial Technology Solutions, LLC. All Rights Reserved.
MORTGAGE MONITOR
JANUARY 2020 | 20
State Del % FC % NC % Year/Year Change in NC% State Del % FC % NC % Year/Year
Change in NC% State Del % FC % NC % Year/Year Change in NC%
National 3.2% 0.5% 3.7% -13.3% National 3.2% 0.5% 3.7% -13.3% National 3.2% 0.5% 3.7% -13.3%MS 9.1% 0.7% 9.8% -2.6% OH* 3.8% 0.7% 4.4% -9.5% NH 2.9% 0.2% 3.2% -13.5%LA* 6.4% 0.8% 7.2% -9.6% KS* 3.7% 0.5% 4.2% -6.2% VA 2.9% 0.2% 3.1% -16.1%AL 5.9% 0.4% 6.3% -7.3% VT* 3.2% 1.0% 4.2% -11.0% AK 2.8% 0.3% 3.0% -9.8%WV 5.5% 0.6% 6.1% -5.0% TN 3.9% 0.2% 4.2% -14.1% NV 2.4% 0.5% 2.9% -13.9%AR 5.3% 0.5% 5.8% -4.2% IL* 3.5% 0.7% 4.1% -17.1% WY 2.5% 0.3% 2.8% -14.4%OK* 4.6% 0.9% 5.4% -1.6% NC 3.7% 0.3% 4.0% -14.8% AZ 2.5% 0.2% 2.7% -8.1%IN* 4.7% 0.7% 5.4% -9.3% NJ* 3.3% 0.6% 3.9% -20.4% SD* 2.2% 0.4% 2.6% -7.4%PA* 4.3% 0.7% 5.0% -8.9% NM* 3.2% 0.7% 3.9% -11.9% MN 2.4% 0.2% 2.6% 2.5%RI 4.2% 0.7% 4.9% -13.7% NE* 3.6% 0.3% 3.9% -1.0% DC 1.8% 0.5% 2.3% -40.9%GA 4.5% 0.3% 4.8% -10.6% IA* 3.3% 0.6% 3.9% -2.8% ND* 1.7% 0.5% 2.2% -10.4%DE* 4.0% 0.7% 4.7% -11.3% FL* 3.2% 0.7% 3.9% -17.7% UT 2.0% 0.1% 2.2% -10.6%SC* 4.1% 0.6% 4.7% -11.4% MO 3.5% 0.3% 3.8% -8.5% MT 1.8% 0.3% 2.1% -13.5%ME* 3.4% 1.2% 4.6% -19.3% KY* 3.3% 0.5% 3.8% -12.3% CA 1.7% 0.2% 1.9% -23.2%TX 4.3% 0.4% 4.6% -7.4% MI 3.3% 0.2% 3.5% -13.1% ID 1.6% 0.2% 1.8% -18.9%MD* 4.0% 0.6% 4.6% -16.1% HI* 2.2% 1.3% 3.5% -19.6% OR 1.5% 0.2% 1.8% -12.7%CT* 3.8% 0.8% 4.6% -17.2% WI* 2.9% 0.4% 3.4% -10.7% WA 1.5% 0.2% 1.7% -22.4%NY* 3.2% 1.4% 4.5% -19.2% MA 2.9% 0.4% 3.4% -15.3% CO 1.5% 0.1% 1.6% -10.4%
*Indicates Judicial State
STATE-BY-STATE RANKINGS BY NON-CURRENT LOAN POPULATION
JANUARY 2020 APPENDIX
Confidential, Proprietary and/or Trade Secret TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, and/or an affiliate. © 2020 Black Knight Financial Technology Solutions, LLC. All Rights Reserved.
MORTGAGE MONITOR
JANUARY 2020 | 21
Mortgage Monitor Disclosures
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JANUARY 2020 DISCLOSURE
Confidential, Proprietary and/or Trade Secret TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, and/or an affiliate. © 2020 Black Knight Financial Technology Solutions, LLC. All Rights Reserved.
MORTGAGE MONITOR
JANUARY 2020 | 22
JANUARY 2020 DEFINITIONS
TOTAL ACTIVE COUNT: All active loans as of month-end including loans in any state of delinquency or foreclosure. Post-sale loans and loans in REO are excluded from the total active count.
DELINQUENCY STATUSES (30, 60, 90+, ETC):
All delinquency statuses are calculated using the MBA methodology based on the payment due date provided by the servicer. Loans in foreclosure are reported separately and are not included in the MBA days delinquent.
90 DAY DEFAULTS: Loans that were less than 90 days delinquent in the prior month and were 90 days delinquent, but not in foreclosure, in the current month.
FORECLOSURE INVENTORY: The servicer has referred the loan to an attorney for foreclosure. Loans remain in foreclosure inventory from referral to sale.
FORECLOSURE STARTS: Any active loan that was not in foreclosure in the prior month that moves into foreclosure inventory in the current month.
NON-CURRENT: Loans in any stage of delinquency or foreclosure.
FORECLOSURE SALE / NEW REO:
Any loan that was in foreclosure in the prior month that moves into post-sale status or is flagged as a foreclosure liquidation.
REO: The loan is in post-sale foreclosure status. Listing status is not a consideration, this includes all properties on and off the market.
DETERIORATION RATIO: The ratio of the percentage of loans deteriorating in delinquency status vs. those improving.
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