The report said early-stage delinquencies also edged higher, with mortgages at least 30 days past due rising 5% from a year earlier. Serious delinquencies were 21% above year-ago levels, though still 5% below their February high.
Mortgages at least 90 days past due made up 1.04% of all loans in September, roughly matching the 1.06% average for the same month from 2017 to 2019. Serious delinquencies on Federal Housing Administration (FHA) loans have fallen 10% since February.
Foreclosure activity kept moving upward even though foreclosure starts were down 3% from a year earlier in September. Completed foreclosure sales increased 15%, and the active foreclosure inventory grew 37% to its highest point since early 2019.
More recent mortgages are playing a bigger role in the foreclosure pipeline. Loans originated in 2022 or later accounted for 43% of foreclosure starts and 49% of completed foreclosure sales in September. More than three-quarters of active foreclosures involved loans that had been delinquent for less than 18 months.
Mortgage prepayment speeds also declined for a sixth straight month. The single-month mortality rate, which tracks the pace at which mortgage principal is prepaid, slipped 4 basis points to 0.59% in September. That was the lowest reading since February 2025 and 20% below a year earlier, as elevated mortgage rates continued to weigh on prepayment activity.
“Serious delinquencies and active foreclosures are drawing renewed attention, and they’re also where technology makes the most difference,” Bob Hart, president of mortgage technology at ICE, said in a statement. “Servicers need to reach homeowners early to help keep them in their homes and move quickly from first contact to an executable workout without manual handoffs.”
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