According to remarks delivered by Comptroller of the Currency John C. Dugan, new data reveal that more than half of loans modified in the first quarter of 2008 fell delinquent within six months.
‘After three months, nearly 36 percent of the borrowers had redefaulted by being more than 30 days past due,’ Dugan said at the Office of Thrift Supervision's (OTS) recent National Housing Forum. ‘After six months, the rate was nearly 53 percent, and after eight months, 58 percent.’
Dugan's remarks provide a preview of the second Office of the Comptroller of the Currency and OTS Mortgage Metrics Report to be published later this month. The report will show continued increasing delinquencies and foreclosures in process for all first-lien mortgages held by the largest national banks and federally regulated thrifts.
Dugan's complete remarks are available at www.occ.gov.
Source: Office of the Comptroller of the Currency