MARKET & TRENDS
2023 FORECLOSURES
Where to Expect Increasing Foreclosure Volume for the Rest of 2023 MORTGAGE SERVICERS EXPECT FORECLOSURE VOLUME WILL CONTINUE TO GRADUALLY INCREASE IN THE SECOND HALF OF 2023 AS ROLL RATES FROM DELINQUENCY TO FORECLOSURE RETURN TO PRE-PANDEMIC NORMS.
By Daren Blomquist
N early nine in 10 (86%) mort- gage servicing industry professionals surveyed at the Auction.com Disposition Summit in June said they expect their organiza- tion’s completed foreclosure auction volume to increase in 2023 compared to 2022. Most (62%) expect volumes to increase slightly while 24% expect volumes to increase substantially. FORECLOSURE VOLUME DRIVERS The survey also sheds some light on why mortgage servicers are anticipating a continued rise in foreclosure volume in 2023. When asked to identify the top impacts on foreclosure volume in 2023, respondents ranked economic conditions (including mortgage rates) at the top of the list. That would indicate that survey respon- dents believe deteriorating eco- nomic conditions in 2023—caused in large part by the Federal Reserve’s string of interest rate increases over the past year—are likely to push more mortgage borrowers into delinquency and are also likely to make it harder for delinquent
FCL STARTS/90-DAY DQ BTA/FCL INVENTORY Roll Rates from Delinquency to Disclosure
9%
8%
7%
6%
5%
4%
3%
2%
1%
SOURCES: MBA ATTOM
0%
foreclosure prevention programs implemented by legislators and regulators during the pandemic will allow some stalled foreclosure volume to be released.
borrowers to avoid foreclosure through a loan modification or mortgage refinance. Survey respondents ranked regulatory intervention as having the second-highest impact on foreclosure volumes in 2023. This would indicate that respondents believe the pullback of necessary and well-intended temporary
REBOUNDING ROLL RATES The likely increase in foreclosure volume in the second half of 2023
10 | think realty magazine :: july – august 2023
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