Mortgage statistics monitor may 2014

Black Knight Financial Services
TM SM ®Trademark(s) of Black Knight IP Holding Company, LLC, or an affiliate.© 2014 BKIS, LLC. All Rights Reserved.
Black Knight Mortgage Monitor
Mortgage Market Performance Observations
Data as of May, 2014 Month-end

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TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, or an affiliate. ©
2014 BKIS, LLC. All Rights Reserved.
May-14
Month-over-month
change
Year-over-year
change
5.62% -0.01% -7.55%
1.91% -5.56% -37.23%
86,300 9.52% -26.11%
0.90% 3.45% -55.68%
1.96% -0.35% 1.28%
2,839,000 18,000 -204,000
1,169,000 -18,000 -166,000
966,000 -50,000 -559,000
3,805,000 -32,000 -763,000
Number of properties that are 30 or more days past due, but not in
foreclosure:
Number of properties that are 90 or more days past due, but not in
foreclosure:
Number of properties in foreclosure pre-sale inventory:
Number of properties that are 30 or more days past due or in
foreclosure:
Total U.S. foreclosure starts:
Monthly Prepayment Rate (SMM):
Foreclosure Sales as % of 90+:
12 Month
Trend
Total U.S. loan delinquency rate (loans 30 or more days past due, but
not in foreclosure):
Total U.S. foreclosure pre-sale inventory rate:
Black Knight First Look – May 2014

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Focus Points
•Prepayments and Originations
Which vintages are prepaying
Recent origination trends
Credit quality
Jumbo originations
•Foreclosure starts and inventory
Foreclosure starts vs. previous years
State level analysis
•HPI and Negative Equity
Pace of HPI recovery
Incentive to sell

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Prepayment activity increased for the third month in a row, rates lower

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Prepayment highest for 2008 vintage, up significantly in post 2008 vintagesWeighted Average Interest Rate for 30 yr fixed active loans<200720072008200920102011201220135.705.545.635.004.784.573.893.95

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Seasonal purchase activity picking up; purchase originations through April on par with 2013
Purchase Originations Jan-Apr:
2012: 847k
2013: 898k
2014: 897k

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Original LTV by product –HARP effect on agency refinance LTV; jumbo lowest

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GNMA and GSE refinances with slight declines in Credit Scores, still high historically

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Jumbo originations for purchases over 8% of total

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Foreclosure starts trends and foreclosure inventory analysis

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Foreclosure starts up 9.5% in May –first time in 8 months
•Over 50% are repeat starts
•Almost 79% are from 2008 and prior vintages

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Majority of the new foreclosures are from more seasoned delinquencies

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2014 foreclosure starts down 32% compared to the same period in 2013, lowest since 2007

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NJ only state where foreclosure starts increased in 2014 compared to the same period last year

15
Foreclosure sales less than half of foreclosure starts

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Foreclosure inventory declining as foreclosure outflows outweigh starts

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Foreclosure inventories are down in all states from May 2013, NJ down the least

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Foreclosure inventories lowest since July 2008, delinquencies lowest since Nov 2007

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Housing price index and equity

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HPI up 0.9% monthly; 6.4% yearly. Negative equity down to 8.9%

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Yearly increase in HPI –majority of states increased; CA, NV, FL among the highest

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Slowdown in HPI –nationally 1.43% lower Y/Y than 2013/2012; CA, NV, AZ slowed down the most

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Less incentive for borrowers to sell as rates go up

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BKFS Mortgage MonitorAppendixData as of May, 2014 Month-end

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May 2014 Data Summary
May Summary StatisticsMay-14Monthly ChangeYTD ChangeYearly ChangeDelinquencies5.62%-0.01%-13.11%-7.55% Foreclosure1.91%-5.56%-22.95%-37.23% Foreclosure Starts86,258 9.47%-17.66%-26.16% Seriously Delinquent (90+) or in Foreclosure4.22%-3.73%-16.07%-26.02% New Originations (data as of Apr-14)442K7.9%-3.1%-44.7% 12 Month HistoryMay-14Apr-14Mar-14Feb-14Jan-14Dec-13Nov-13Oct-13Sep-13Aug-13Jul-13Jun-13May-13Delinquencies5.62%5.62%5.52%5.97%6.27%6.47%6.45%6.28%6.46%6.20%6.41%6.68%6.08% Foreclosure1.91%2.02%2.13%2.22%2.35%2.48%2.50%2.54%2.63%2.66%2.82%2.93%3.05% Foreclosure Starts86,258 78,796 88,113 91,993 94,075 104,759 104,939 118,837 108,953 107,552 112,849 109,042 116,812 Seriously Delinquent (90+) or in Foreclosure4.22%4.39%4.52%4.70%4.92%5.03%5.05%5.10%5.26%5.22%5.53%5.62%5.71% New Originations442K409K338K359K456K443K499K518K657K750K783K838K 6.08% 6.68% 6.41% 6.20% 6.46% 6.28% 6.45% 6.47% 6.27% 5.97% 5.52% 5.62% 5.62% Total Delinquencies 838K783K750K657K518K499K443K456K359K338K409K442K New Originations

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Seven of the top 10 states for total non-current are judicial
StateDel %FC %Non- Curr % Yr/Yr Change in NC% StateDel %FC %Non- Curr % Yr/Yr Change in NC% StateDel %FC %Non- Curr % Yr/Yr Change in NC% National5.6%1.9%7.5%-17.5%National5.6%1.9%7.5%-17.5%National5.6%1.9%7.5%-17.5% MS12.1%1.6%13.8%-4.1%GA7.4%1.0%8.4%-14.2%KS*5.4%1.0%6.4%-8.2% NJ*6.5%6.1%12.6%-14.9%SC*6.5%1.9%8.4%-11.5%IA*4.5%1.5%5.9%-12.4% FL*6.1%5.2%11.3%-31.7%NV6.1%2.2%8.3%-33.6%OR3.6%2.1%5.7%-18.4% NY*6.2%4.7%10.9%-11.6%IL*5.5%2.7%8.3%-23.6%WA4.1%1.6%5.7%-23.9% LA*8.8%1.8%10.7%-2.7%HI*4.0%4.3%8.3%-19.1%UT4.6%0.8%5.5%-15.8% ME*6.6%3.9%10.5%-10.3%MA6.8%1.4%8.2%-9.3%VA4.6%0.6%5.3%-10.5% RI7.9%2.3%10.2%-11.4%OK*5.9%2.1%8.0%-7.1%NE*4.5%0.5%5.0%-6.8% AL8.8%1.0%9.8%-2.4%KY*5.9%1.6%7.5%-8.0%ID3.7%1.3%5.0%-21.3% CT*6.1%3.1%9.2%-17.5%NM*5.1%2.3%7.4%-7.7%CA3.8%0.7%4.5%-28.2% DE*6.7%2.4%9.1%-10.0%NC6.3%1.0%7.2%-13.5%AZ3.8%0.6%4.4%-21.3% PA*6.8%2.3%9.1%-9.5%VT*4.7%2.4%7.1%-13.4%WY3.6%0.5%4.1%-3.4% IN*7.1%2.0%9.1%-11.4%TX6.3%0.7%7.0%-7.7%MN3.5%0.6%4.1%-14.2% MD*6.7%2.4%9.0%-19.4%MO6.1%0.8%6.9%-7.5%AK3.6%0.5%4.1%-5.2% WV8.0%1.1%9.0%0.3%WI*5.3%1.4%6.7%-15.6%MT3.1%0.9%4.0%-8.8% AR7.5%1.5%9.0%-9.5%NH5.7%1.0%6.7%-8.7%CO3.3%0.6%3.8%-15.0% OH*6.6%2.2%8.8%-13.7%DC4.8%1.9%6.7%-16.5%SD*2.9%0.7%3.6%-6.2% TN7.8%0.9%8.7%-7.5%MI5.7%0.8%6.5%-14.0%ND*1.9%0.6%2.5%-14.2% * - Indicates Judicial State

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Loan counts and average days delinquent
MonthTOTAL ACTIVE COUNT30 DAYS60 DAYS90+ DAYSFCTotal Non- CurrentFC StartsAverage Days Delinquent for 90+ Average Days Delinquent for FCRatio of 90+ to FC1/31/200854,094,2821,701,163664,956940,832817,9484,124,899197,210189255115.0% 1/31/200954,267,1871,945,997909,7441,817,8091,318,8405,992,391249,655191321137.8% 1/31/201053,476,5231,897,603882,0892,870,2042,031,0207,680,916282,601252417141.3% 1/31/201152,138,7101,682,266715,3501,988,7812,162,6016,548,999261,27233252892.0% 1/31/201251,111,7801,531,458627,8741,758,8942,163,6596,081,884219,75039766881.3% 2/29/201250,992,5501,441,378560,9011,708,9082,142,6755,853,862182,18440867879.8% 3/31/201250,894,0381,322,231512,5111,624,2232,130,3885,589,352195,12842568876.2% 4/30/201250,751,3641,371,185518,3451,596,0302,131,4785,617,039183,48943070274.9% 5/31/201250,602,0181,390,010533,1831,571,3542,110,2795,604,827218,90943671774.5% 6/30/201250,427,2211,464,660547,5331,589,7292,060,6195,662,541173,55644173177.1% 7/31/201250,064,8421,410,175552,8811,556,6322,042,1425,561,830185,81144874376.2% 8/31/201249,986,2401,370,660544,5061,518,0362,018,5845,451,786201,17345175375.2% 9/30/201250,044,4151,590,658578,2161,533,5691,939,1595,641,601159,07845276079.1% 10/31/201249,852,8081,403,340560,9961,542,7031,801,0475,308,085124,29246177885.7% 11/30/201250,337,8971,438,015561,1581,584,1121,767,0025,350,287130,05346579589.6% 12/31/201249,865,0001,454,875575,8451,545,1861,715,6485,291,554136,28946580890.1% 1/31/201349,896,1421,407,343567,0221,531,2161,702,7155,208,297147,59346881489.9% 2/28/201350,123,5641,400,311526,6491,483,4231,693,6995,104,081131,82647382487.6% 3/31/201350,186,3641,346,310495,3521,465,9531,688,8094,996,424121,01249283486.8% 4/30/201350,117,1881,252,302464,6761,394,1321,588,1384,699,249127,49650384387.8% 5/31/201350,076,5351,243,193465,1291,334,6991,524,8374,567,859116,81251185287.5% 6/30/201349,823,9921,471,134511,7311,344,8181,457,6994,785,382109,04251286092.3% 7/31/201349,784,1841,335,498510,5851,347,1611,406,1214,599,365112,84951787695.8% 8/31/201350,370,7721,344,657491,2831,287,8671,340,9554,464,763107,55250589596.0% 9/30/201350,521,8571,397,119537,2601,331,3441,327,6084,593,332108,953513895100.3% 10/31/201350,161,4571,345,175523,7291,282,7831,275,5794,427,266118,837512900100.6% 11/30/201350,264,3451,424,197534,1671,282,9381,256,1704,497,471104,939500905102.1% 12/31/201350,163,9561,411,348551,4731,280,3361,244,4364,487,591104,759490920102.9% 1/31/201450,044,8991,318,673532,5481,288,5731,175,4704,315,26394,075481943109.6% 2/28/201450,118,6651,267,410482,1401,241,8781,114,9854,106,41391,993481956111.4% 3/31/201450,211,8561,135,658435,5211,198,9071,069,7913,839,87788,113496966112.1% 4/30/201450,211,8851,197,193436,8131,187,0191,016,2873,837,31278,796495985116.8% 5/31/201450,541,1741,222,390447,9301,168,971966,0623,805,35386,258501993121.0%

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BKFS Mortgage MonitorDisclosures: Product / Metric Definitions and Market Sizing

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Disclosure Page: Product Definitions
*Conforming limits do not account for temporary or high-cost area increases.

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Disclosure Page: Metrics 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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Disclosure Page: Extrapolation Methodology
Mortgage statistics are scaled to estimate the total market performance based on coverage within the McDashdatabase.
The following table contains information on market coverage by product as of June 2012; extrapolations also include adjustments for vintage and as of date. Additional information is available upon request.

Mortgage statistics monitor may 2014

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