ICE First Look: September Delinquencies Track Seasonal Norms as Foreclosure Pipeline Shifts Toward Recent Vintages
Industry Update
October 27, 2026
Source: ICE Mortgage Technology
Intercontinental Exchange, Inc. (NYSE: ICE), one of the world’s leading providers of financial market technology and data powering global capital markets, today released the September 2026 ICE First Look at mortgage delinquency, foreclosure and prepayment trends.
Key takeaways from this month’s findings include:
National delinquency rate in line with seasonal norm: The national delinquency rate rose 12 basis points (bps) to 3.66% in September, roughly in line with its seasonal norm. The rate remains 34 bps below September 2019 and below every pre-pandemic September on record.
Early-stage delinquencies up modestly; serious FHA delinquencies decline: Loans 30 days past due are up 5% year over year. Serious delinquencies are up 21% from a year ago but are down 5% from their February peak, with the share of seriously delinquent loans (1.04%) now in line with the 2017-2019 September average of 1.06%. Serious FHA delinquencies have declined 10% since February.
Foreclosure activity continues to trend higher: While foreclosure starts were down 3% year over year in September, completed sales rose 15% and active foreclosure inventory rose by 37%, hitting its highest level since early 2019.
Recent originations now drive the foreclosure pipeline as aging falls to a 15-year low: Loans originated in 2022 or later accounted for 43% of September’s foreclosure starts and 49% of completed sales, with more than three quarters of active foreclosures having been delinquent for less than 18 months.
Prepayment speeds fell to a 19-month low: Single-month mortality (SMM) eased 4 bps to 0.59%, a sixth consecutive monthly decline from March’s 1.06% and the lowest reading since February 2025. Speeds are down 20% annually as elevated mortgage rates continue to suppress prepayment activity.
“Serious delinquencies and active foreclosures are drawing renewed attention, and they’re also where technology makes the most difference,” said Bob Hart, President of Mortgage Technology at ICE. “Servicers need to reach homeowners early to help keep them in their homes and move quickly from first contact to an executable workout without manual handoffs. ICE’s MSP is built to help servicers manage that complexity at scale, with integrated capabilities that support consistent, compliant processes from outreach through workout decisions and default resolution.”
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