Black Knight : First Look at January 2023 Mortgage Data

• With this month's First Look, Black Knight begins applying its expanded McDash loan-level mortgage data set - already available to clients and contributors - to its public performance metrics reporting
• The enhanced reporting provides additional insight into more than 200M active and historical loan-level mortgage records for even more granular and representative analyses of today's complex market
• With more than 80 contributors, McDash has even greater coverage of nonbanks and smaller servicing portfolios, providing insight into those loans' performance that was previously difficult to extract
• The addition of Black Knight's eMBS agency securities data enables more precise market sizing, providing unprecedented clarity into performance across an active mortgage universe of some 52M loans
• With full history and all performance metrics updated to January 2000, the data enhancements will provide even more informative Black Knight public reporting moving forward
• January performance data showed a slight decrease (-10 basis points) in the national delinquency rate month-over-month, which is now down 15.1% year over year
• Foreclosure starts saw a fourth straight increase, but remain 37% below pre-pandemic levels; active foreclosures are up 20% since January 2022, but they too remain nearly 20% below pre-pandemic levels
• As purchase and refinance lending continue to face interest rate headwinds, prepayment activity hit yet another record low in January, dating back to at least 2000 when Black Knight began reporting the metric

JACKSONVILLE, Fla. - Feb. 24, 2023 - Black Knight, Inc. (NYSE:BKI) reports the following "first look" at January 2023 month-end mortgage performance statistics derived from its newly enhanced and greatly expanded McDash loan-level data set representing more than 60% of active mortgages nationwide. Loan-level detail on more than 200M active and historical mortgages has already made McDash the industry's leading repository of servicer-contributed performance data. The vast population of active mortgages in the data set, now coupled with Black Knight's eMBS agency securities data, also allow for more precise market sizing to better reflect the evolving mortgage landscape of the past several years - and of that to come.

"McDash was already the mortgage and capital markets sectors' go-to source for loan-level performance metrics on the majority of the market, contributed directly by the nation's largest servicers," said Ben Graboske, president of Black Knight Data & Analytics. "Mortgage data in McDash comes from a wide range of servicers, including both Black Knight MSP servicing clients as well as those using other servicing systems of record. Now at over 80 active contibutors and counting, we've also significantly increased our coverage of nonbank servicers as well as those with smaller portfolios. Prior to this, visibility into these portfolios - representing millions of loans and a dynamic cross-section of the market - simply hasn't been available at this level of granularity in public performance metrics."

Delinquencies were down across the board in January, with the overall national delinquency rate declining 10 basis points to 3.38% month over month, down 15.1% year over year. The number of borrowers 30-days late decreased by 46K (-4.8%), while 60-day delinquencies also ticked down slightly. Serious delinquencies (90+ days past due) continued to improve nationally (-4K), with such inventories declining in a large majority (44) of states. Florida - still dealing with the aftermath of Hurricane Ian - saw another 1.7K loans fall into serious delinquency.

Foreclosure starts rose 17% in the month to 33K, marking the fourth consecutive increase, but remain 37% below pre-pandemic levels. Foreclosure was started on 5.6% of serious delinquencies in January, still 48% below the start rate seen in January 2020. Active foreclosure inventory rose by 2.5% in the month, and is now up 48K or 20% since January 2022, but remains nearly 20% below pre-pandemic levels. A total of 7K foreclosures were completed nationally in January, up 15.2% from the month prior, but remain nearly 50% below early 2020 levels.

Graboske added: "Given the fundamental changes we've seen in the market's makeup - even before the pandemic - and as the industry and wider economy move ahead into an uncertain future, this additional visibility couldn't come at a more important time. Our role as a public provider of objective and unvarnished housing and mortgage market data and analysis is something we take very seriously. We've been through enough boom-and-bust cycles in the mortgage industry to understand just how critical this role is - to our industry, as well to the public, the media and the wider American economy."

*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.

Notes:

• Totals are extrapolated based on Black Knight's loan-level database of mortgage assets.
• All whole numbers are rounded to the nearest thousand, except foreclosure starts, which are rounded to the nearest hundred.

The company will provide a more in-depth review of this data in its monthly Mortgage Monitor report, which includes an analysis of data supplemented by detailed charts and graphs that reflect trend and point-in-time observations. The Mortgage Monitor report will be available online at https://www.blackknightinc.com/data-reports/ by March 6, 2023.

For more information about these updates, please read our blog post on the subject. For more information about gaining access to Black Knight's loan-level database, , please send an email to [e-mail].

About Black Knight

Black Knight, Inc. (NYSE:BKI) is an award-winning software, data and analytics company that drives innovation in the mortgage lending and servicing and real estate industries, as well as the capital and secondary markets. Businesses leverage our robust, integrated solutions across the entire homeownership life cycle to help retain existing customers, gain new customers, mitigate risk and operate more effectively.

Our clients rely on our proven, comprehensive, scalable products and our unwavering commitment to delivering superior client support to achieve their strategic goals and better serving their customers. For more information on Black Knight, please visit www.blackknightinc.com.