The percentage of first-lien mortgages that were current and performing at the end of the first quarter of this year increased to the highest level in three years, according to data released by the Office of the Comptroller of the Currency (OCC). Furthermore, the percentages of mortgages that were 30 to 59 days and 60 to 89 days delinquent decreased to their lowest levels since the OCC began publishing its mortgage performance reports in the first quarter of 2008.
Servicers initiated 352,989 new home retention actions – modifications, trial-period plans, and payment plans – during the first quarter. Completed foreclosures increased to 122,979 in the first quarter, up 5.9% from the previous quarter and up 2.7% from the first quarter of 2011.
However, the number of new foreclosures initiated during the quarter decreased to 286,951, down 1.8% from the previous quarter. The inventory of foreclosures in process increased from the previous quarter to 1,269,921, but is down from 1,308,757 a year ago.
At the end of the first quarter, 57.9% of modifications that reduced payments by 10% or more were current and performing, compared with 36.8% of those that reduced payments by less. On average, modifications implemented in the first quarter reduced monthly principal and interest payments by $437, which is 31% more than modifications implemented during the first quarter of 2011.