Jacksonville, Florida-based Black Knight, Inc., a mortgage technology and data provider, issued a “first look” report at the December 2022 mortgage performance statistics, which also show that mortgage prepayment activity fell to 0.39% – with single month mortality (SMM) hitting its third consecutive record low dating back to 2000 when Black Knight began reporting the metric. Single month mortality (SMM) is a measure used in the mortgage industry to compare the rate at which borrowers prepay their mortgages within a given month. A lowering SMM rate is one possible indicator of a slowing or weakening economy. It is calculated by dividing the number of mortgages that were prepaid within a month by the total number of mortgages outstanding at the start of that month.
Even so, Black Knight says the recent setbacks in Florida are largely driven by storm recovery issues and that the state had previously made great strides after being one of the hardest hit states after the recession in 2008-2010. Florida was also one of the hardest hit states during the COVID pandemic, ranking in the bottom five in the nation for homeowners who had fallen behind in their payments. But Black Knight says the state made a remarkable recovery over that span.
“Florida has come a long way. After five years of having the highest non-current rate of any state following the Great Financial Crisis – and the highest concentration of underwater homeowners from late 2013 through 2015 – Floridians’ mortgage performance had been trending stronger in recent years,” said Andy Walden, VP of enterprise research strategy at Black Knight. “Florida’s non-current rate had fallen to 3.31% in August of last year, ranking 23rd among all states, its [best] non-current ranking in more than 22 years. That said, the impact of hurricane Ian has pushed delinquencies higher recently, with 35K more past-due homeowners than prior to the storm – a 29% increase as of the end of 2022.”
In Florida, serious delinquencies (90+ days past due) rose by 8,700 in the wake of Hurricane Ian. That same statistic has actually improved nationally, with 44 other states seeing that measure decline in the month.
Read Black Knight’s national mortgage report here.