February Uptick in Early-Stage Delinquencies Drives First Increase in Past- Due Mortgages in Nine Months; Foreclosure Starts Fall 24% Following January Spike

• Though past-due loans edged higher (+1.8%) in February, the national delinquency rate remains near pre-pandemic levels heading into March, a month known for strong seasonal performance improvements
• February’s increase was driven by a rise of 97,000 in early-stage delinquencies – which nevertheless remain well below pre-pandemic levels
• At the same time, the number of seriously delinquent mortgages (those 90 or more days past due) fell by 72,000 as borrowers leaving forbearance plans continue to return to making payments
• After seeing a sizable spike in January, foreclosure starts pulled back by 24%, with the month’s 25,000 starts 25% below February 2020 levels, prior to the onset of pandemic-related economic stress
• Likewise, despite a 39,000 increase in the number of loans in active foreclosure, the population remains 32% below February 2020 levels
• Prepayment activity – as reflected in single-month mortality – dropped another 11% in February, hitting a nearly three-year low as rising rates continue to impact refinance volumes