ICE: Serious Delinquencies Climb; Foreclosure Inventory Growth Slows

(Thumbnail illustration Credit: Blake Wheeler via Unsplash)

ICE, Atlanta, reported early-stage mortgage delinquencies remained below year-ago levels in August, but serious delinquencies climbed.

“Loans 30 and 60 days past due rose in August but remain down 21,000 from a year ago,” ICE said in its August 2026 ICE First Look at mortgage delinquency, foreclosure and prepayment trends.

The report said seriously delinquent loans rose by 11,000 to 574,000–ending five months of declines–and remain 19% above last year. Still, at 1.04% of active loans, the serious delinquency rate is in line with the 2017-2019 pre-pandemic August average of 1.03%.

Foreclosure starts and sales eased, the report noted. Starts fell 6% in August, though still up 29% annually. Sales dipped 2%, running at just 57% of August 2019’s pace despite being up 12% year over year.

Foreclosure inventory held largely flat: Pre-sale inventory rate was unchanged at 0.54%, matching its highest reading since February 2020. Active inventory rose just 2,000, the smallest monthly build since November 2025.

ICE reported that prepayment speeds fell to a 17-month low: Single-month mortality was down 11 basis points to 0.64%, marking a fifth consecutive monthly decline as mortgage rates trended higher. Recent originations from 2023-2025 led the pullback, with SMM easing to 0.91% from a March peak of 2.32%.