OCC: Mortgage Performance Continued To Improve In Q1

Posted by Patrick Barnard on July 01, 2015 No Comments
Categories : Mortgage Servicing

Improved economic conditions combined with foreclosure prevention efforts resulted in improved mortgage performance during the first quarter, according to the Office of the Comptroller of the Currency (OCC).

About 94.2% of all first-lien mortgages serviced by the eight major banks tracked were performing as of the first quarter, a significant improvement compared to the first quarter of 2014 when about 93.1% were performing, according to the OCC's quarterly report on mortgage performance.

The report shows that about 1.9% of the loans serviced by the eight banks were 30 to 59 days past due, a decrease of about 7.0% compared to a year earlier. About 2.6% of the portfolio was seriously delinquent (60 or more days past due or held by bankrupt borrowers whose payments are 30 days or more past due). That's a decrease of about 16.4% compared to the first quarter of 2014.

About 299,424 mortgages, or about 1.3%, were in some stage of the foreclosure process as of the end of the first quarter – a decrease of 30.8% from a year earlier.

The eight servicers initiated 83,058 new foreclosures during the quarter, a decrease of 8.6% from a year earlier. The number of completed foreclosures decreased 31.5% to 38,509.

About 188,816 home retention actions – including modifications, trial period plans and shorter term payment plans – were initiated by the eight servicers during the quarter. About 47,430 home forfeiture actions, including completed foreclosures, short sales and deeds-in-lieu were completed – a decrease of about 20.6% compared to the first quarter of 2014.

About 89.2% of the modifications granted reduced monthly principal and interest payments.

About 55.6% of modifications reduced payments by 20% or more. Modifications reduced payments by $271 per month on average.

Of the approximately 3.7 million modifications completed by the servicers from Jan. 1 2008 through Dec. 31, 2014, about 53% were active at the end of the first quarter, while 47% had exited the portfolio through payment in full, involuntary liquidation, or transfer to a non-reporting servicer.

Of the approximately 2 million active modifications at the end of the first quarter, 72.2% were current and performing, 22.4% were delinquent, and 5.5% were in the process of foreclosure.

The mortgages serviced by the eight banks represent about 43.9% of all residential mortgages outstanding in the U.S. – 22.7 million loans totaling $3.8 trillion in principal balances.

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OCC: Mortgage Performance Continued To Improve In Q1

Posted by Patrick Barnard on June 26, 2014 No Comments
Categories : Mortgage Servicing

About 93.1% of the mortgages serviced by banks were current and performing at the end of the first quarter – a vast improvement when compared to 91.8% at the end of the fourth quarter of 2013 and 90.2% a year earlier, according to a report from the Office of the Comptroller of the Currency (OCC).

Roughly 48% of all U.S. mortgages – or about 24.5 million loans totaling $4.1 trillion in principal – are serviced by banks, according to the OCC. The remainder is serviced by non-bank entities.

Year over year, the percentage of mortgages that were 30 to 59 days past due decreased 19.8% to reach 2.1% of all loans serviced by banks – the lowest level since the OCC began reporting mortgage performance in 2008.

Seriously delinquent mortgages (60 or more days past due or held by bankrupt borrowers whose payments are 30 days or more past due) decreased 22.4% from a year earlier to reach 3.1% of all mortgages serviced by banks – the lowest level since June 2008, according to the report.

A total of 432,832 bank-serviced mortgages were in some stage of foreclosure at the end of the first quarter – a decrease of 52.3% compared to the first quarter of 2013. The percentage of mortgages that were in some stage of foreclosure fell to 1.8% of all bank-serviced mortgages.

Bank servicers initiated 90,852 new foreclosures during the quarter – a decrease of 49.1% from a year earlier.

About 56,185 foreclosures were completed during the quarter – a drop of 33.9% compared to a year ago.

Bank servicers implemented 237,133 home retention actions (modifications, trial-period plans and shorter-term payment plans) in the quarter, compared with 71,678 home forfeiture actions (completed foreclosures, short sales and deed-in-lieu-of-foreclosure actions).

The number of home retention actions implemented by bank servicers decreased 32.1% compared to the first quarter of 2013.

The report also shows that of the 2.07 million modifications that were active at the end of the first quarter, 69.9% were current and performing at quarter end, 23.9% were delinquent, and 6.1% were in the process of foreclosure.

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