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42 | M R EP O RT SERVICING THE LATEST O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T Q3 Foreclosure Rates 'Reflecting Other Aspects of the Economy' With talk of a recession on the horizon, ATTOM's latest data breaks down foreclosure rates and related data, as well as how they are being impacted by larger economic factors. A TTOM has released its Q 3 2022 U.S. Foreclo- sure Market Report, which shows there were a total of 92,634 U.S. proper- ties with foreclosure filings—de- fined as default notices, scheduled auctions or bank repossessions— up 3% from Q2 and 104% year over year. There were a total of 31,836 U.S. properties with foreclosure filings in September 2022, down 8% from August 2022, but up 62% from September 2021. Lenders started the foreclosure process on 67,249 U.S. properties in Q 3 2022, up just 1% from the second quarter, and up 167% from a year ago—nearly reaching pre- pandemic levels. "Foreclosure starts, while rising since the end of the govern- ment's foreclosure moratorium, still lag behind pre-pandemic levels," said Rick Sharga, EVP of Market Intelligence for ATTOM. "Foreclosure activity is reflecting other aspects of the economy, as unemployment rates continue to be historically low, and mortgage delinquency rates are lower than they were before the COVID-19 outbreak." The Bureau of Labor Statistics (BLS) has reported that the U.S. economy added 263,000 jobs in September, as the unemployment rate edged back down to a more than 50-year low of 3.5%. Regionally, the top five states that posted the greatest number of foreclosure starts in the third quarter included: • California with 7,368 foreclosure starts • Florida with 6,671 foreclosure starts • Texas with 6,217 foreclosure starts • Illinois with 4,702 foreclosure starts • New York with 3,997 foreclo- sure starts Among the 223 metropolitan statistical areas (MSAs) that ATTOM analyzed in the report, the top five areas that posted the greatest number of foreclo- sure starts in the third quarter included: • New York, New York, with 4,621 foreclosure starts • Chicago, Illinois, with 3,950 foreclosure starts • Los Angeles, California,, with 2,275 foreclosure starts • Philadelphia, Pennsylvania with 1,991 foreclosure starts • Miami, Florida, with 1,990 foreclosure starts Among the MSAs with a population greater than one mil- lion that saw a slide in foreclosure starts in the third quarter were: • Tulsa, Oklahoma, down 60% • Kansas City, Missouri, down 26% • Birmingham, Alabama, down 25% • Minneapolis, Minnesota, down 23% • Cincinnati, Ohio, down 22% Nationwide, one in every 1,517 properties had a foreclosure filing in Q 3 2022, and states reporting the highest foreclosure rates in the third quarter were: • Illinois with one in every 694 housing units with a foreclo- sure filing • Delaware with one in every 825 housing units with a foreclo- sure filing • New Jersey with one in every 855 housing units with a fore- closure filing • South Carolina with one in every 971 housing units with a foreclosure filing • Ohio with one in every 1,027 housing units with a foreclo- sure filing Among the 223 MSAs analyzed by ATTOM, those with the highest foreclosure rates in Q 3 2022 were: • Peoria, Illinois, with one in every 472 housing units with a foreclosure filing • Cleveland, Ohio, with one in every 589 housing units with a foreclosure filing