The overall performance of first-lien mortgages continued to improve in the fourth quarter, according to the Office of the Comptroller of the Currency (OCC).
About 94.7% of mortgages were current and performing as of the end of the quarter, according to the OCC’s quarterly Mortgage Metrics Report, which measures the performance of about 35% of all residential mortgages outstanding in the U.S.
That’s a significant improvement compared with 94.1% a year earlier.
Mortgage servicers initiated 45,495 new foreclosures in the fourth quarter – a decrease of 5.1% compared with the third quarter and a decrease of 28.2% compared with the fourth quarter of 2015, according to the OCC’s data.
As first-lien mortgage performance improves, the number of loss mitigation actions declines. Servicers covered in the report implemented 32,312 mortgage modifications in the fourth quarter – a decrease of 9.3% compared with the third quarter. More than 89% of the modifications reduced borrowers’ monthly payments.