ICE Mortgage Technology, a neutral provider of a robust end-to-end mortgage platform and part of Intercontinental Exchange, Inc. (NYSE: ICE), and one of the leading providers of mortgage data, today released the September 2025 ICE First Look at mortgage delinquency, foreclosure and prepayment trends.

The data shows that overall mortgage performance remains historically strong, with both delinquencies and foreclosure activity remaining below long-term averages. While some shifts are emerging among government-backed loan segments, these trends largely represent a normalization of market dynamics rather than broad-based weakness.

“The mortgage market remains remarkably resilient, with mortgage performance continuing to hold up well,” said Andy Walden, Head of Mortgage and Housing Market Research at ICE. “Delinquency rates improved in September, and even as we see increases in activity among FHA loans, we’re largely returning to more typical levels following several years of artificially low foreclosure volumes.”

Key takeaways from this month’s findings include:

• Delinquencies remain well below pre-pandemic norms: The national delinquency rate fell by 2 basis points (bps) in September to 3.42%, down 6 bps from the same time last year and 58 bps below its September 2019 pre-pandemic level.
  
  
  
  
• Strength across delinquency bands in September: Both early-stage (30-day) and late-stage (90+ day) delinquencies improved month-over-month, as the vast majority of borrowers remain current on their mortgage payments.
  
  
  
  
• Non-current rates improved for most investors: The non-current rate (delinquencies plus active foreclosures) declined year-over-year among GSE (-3 bps), VA (-4 bps) and portfolio-held loans (-17 bps). FHA loans were the notable exception, rising by 44 bps from last year’s levels.
  
  
  
  
• Foreclosure activity is returning to normal ranges: There were 103,000 foreclosure starts in Q3 2025, a 23% increase from the same period last year, but 18% below Q3 2019’s pre-pandemic levels.
  
  
  
  
• Improving efficiency in resolution: The number of loans in active foreclosure rose modestly year-over-year (18%), yet overall foreclosure volume remains historically low, with Q3 foreclosure sales (21,000) at roughly half of 2019 levels. FHA loans account for the majority of that rise, making up 38% of active foreclosures, roughly half of the annual rise in foreclosure starts and 80% of the rise in active foreclosures. The resumption of VA foreclosure activity following last year’s moratorium is largely responsible for the remainder.
  
  
  
  
• Prepayments are edging higher: Prepayments rose by 8 bps in September to a 0.74% single month mortality (SMM) rate, a 15% increase from the prior year, as interest rates began to ease in August.

Data as of Sept. 30, 2025

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 3.42%

Month-over-month change: -0.44%

Year-over-year change: -1.75%

Total U.S. foreclosure pre-sale inventory rate: 0.40%

Month-over-month change: 5.69%

Year-over-year change: 16.38%

Total U.S. foreclosure starts: 42,000

Month-over-month change 43.51%

Year-over-year change: 60.53%

Monthly prepayment rate (SMM): 0.74%

Month-over-month change: 11.72%

Year-over-year change: 15.29%

Foreclosure sales: 7,200

Month-over-month change: 2.74%

Year-over-year change: 34.90%

Number of properties that are 30 or more days past due, but not in foreclosure: 1,877,000

Month-over-month change: -8,000

Year-over-year change: -4,000

Number of properties that are 90 or more days past due, but not in foreclosure: 477,000

Month-over-month change: -5,000

Year-over-year change: 1,000

Number of properties in foreclosure pre-sale inventory: 222,000

Month-over-month change: 12,000

Year-over-year change: 34,000

Number of properties that are 30 or more days past due or in foreclosure: 2,098,000

Month-over-month change: 4,000

Year-over-year change: 30,000

The company will provide a more in-depth review of this data in its monthly Mortgage Monitor report, which will be available online at https://www.icemortgagetechnology.com/resources/data-reports on Oct. 6, 2025.

For more information about gaining access to ICE’s loan-level database, please send an email to ICE-MortgageMonitor@ice.com.

About the ICE First Look

ICE maintains the nation’s leading repository of loan-level residential mortgage data and performance information – which covers the majority of the U.S. market – including tens of millions of loans across the spectrum of credit products and more than 230 million historical records. In addition, the company maintains a robust public property records databases that covers 99.9% of the U.S. population and households from more than 3,100 counties. ICE’s research experts carefully analyze this data to produce the First Look, a monthly summary of month-end delinquency, foreclosure and prepayment statistics.

About Intercontinental Exchange

Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks that connect people to opportunity. We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency. ICE’s futures, equity, and options exchanges – including the New York Stock Exchange – and clearing houses help people invest, raise capital and manage risk. We offer some of the world’s largest markets to trade and clear energy and environmental products. Our fixed income, data services and execution capabilities provide information, analytics and platforms that help our customers streamline processes and capitalize on opportunities. At ICE Mortgage Technology, we are transforming U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship. Together, ICE transforms, streamlines and automates industries to connect our customers to opportunity.

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Category: Mortgage Technology

Source: Intercontinental Exchange

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