Overview
- ICE released its May First Look Friday, reporting the national delinquency rate rose 15 basis points to 3.50% and attributing the 30-day increase largely to a Sunday month-end payment processing effect.
- Loans 90 or more days past due held at 577,000 month over month but increased by 111,000 from a year earlier, the largest annual rise in serious delinquencies since 2020.
- Active foreclosure inventory climbed to 280,000 loans, up 34% year over year and the highest level in six years, while foreclosure starts fell about 9% from April but remained roughly 19% above last year.
- Prepayment speeds cooled as mortgage rates rose, with single-month mortality dropping to 0.79%, and cure activity for seriously delinquent loans eased in May with FHA loans continuing to lag the broader market.
- ICE says the growing pipeline of late-stage delinquencies and foreclosures will increase operational and credit pressure on servicers and MSR holders and calls for scalable loss-mitigation technology to manage outreach, workouts and compliance.