OCC: Mortgage Performance Continued To Improve In Q3

Posted by Patrick Barnard on December 15, 2015 No Comments
Categories : Mortgage Servicing

About 93.9% of first-lien mortgages tracked by the Office of the Comptroller of the Currency (OCC) were performing as of the end of the third quarter compared with 93.0% in the third quarter of 2014.

According to the agency's quarterly Mortgage Metrics Report, about 2.3% of mortgages were delinquent (30 to 60 days past due) – a decrease of 4.4% compared with the third quarter of 2014. About 2.6% were seriously delinquent (60 days or more past due) – a decrease of 16.1% compared with a year earlier.

The OCC notes that mortgage performance improved only slightly compared with the second quarter.

The regulator tracks about 42% of all residential mortgages outstanding in the U.S.

According to the OCC's data, there were about 64,156 foreclosure starts in the third quarter – down from 82,668 in the third quarter of 2014.

About 269,751 mortgages were in some stage of foreclosure at the end of the third quarter – a decrease of 23.8% compared with a year earlier.

Servicers implemented 147,543 home retention actions – including modifications, trial-period plans and shorter-term payment plans – during the quarter.

Nearly 88% of modifications made during the third quarter reduced monthly principal and interest payments; 53.0% reduced payments by 20% or more. These modifications reduced payments by $243 per month on average.

Since January 2008, servicers have granted more than 3.8 million modifications. As of the third quarter, about 51% of these modifications were still active. The remaining 49% had exited through payment in full, involuntary liquidation or transfer to a non-reporting servicer.

Of the approximately 1.9 million active modifications at the end of the third quarter, 71.2% were current and performing, 23.6% were delinquent, and 5.2% were in the process of foreclosure, according to the report.

Register here to receive our Latest Headlines email newsletter


Leave a Comment

OCC: Mortgage Performance Continued To Improve In Q3

Posted by Patrick Barnard on January 09, 2015 No Comments
Categories : Mortgage Servicing

The performance of first-lien mortgages serviced by seven national banks and one federal savings association continued to improve in the third quarter of 2014, according to the Office of the Comptroller of the Currency's (OCC) quarterly Mortgage Metrics Report

As per the report, 93% of mortgages serviced by the eight institutions were current and performing at the end of the quarter, compared with 92.9% at the end of the second quarter and 91.4% in the third quarter of 2013.

About 2.4% of the mortgages in question were 30 to 59 days past due, as of the end of the third quarter, an increase of 1.9% from the previous quarter but down 8% compared to a year earlier. Seriously delinquent mortgages (defined as loans 60 or more days past due or held by bankrupt borrowers whose payments are 30 days or more past due) made up 3.1% of the portfolio, a decrease of 0.9% from the previous quarter and down 14.5% from a year earlier.

Foreclosure activity among the reporting servicers also continued to decline. The number of mortgages in the process of foreclosure at the end of the third quarter fell to 353,906, a decrease of 41.5% from a year earlier. About 1.5% of the mortgages were in some stage of foreclosure.

The eight servicers in total initiated 82,668 new foreclosures during the quarter, a decrease of 36.7% from a year earlier. The number of completed foreclosures also decreased 45.4% from a year earlier to 45,245.

In a release, the OCC says improved economic conditions and foreclosure prevention assistance contributed to the decline in foreclosure activity.

Servicers implemented 205,689 home retention actions – including modifications, trial-period plans and shorter-term payment plans – during the quarter, a decrease of 1.2% compared to the second quarter and down 34.3% compared to the third quarter of 2013. There were 58,214 home forfeiture actions, including completed foreclosures, short sales and deed-in-lieu-of-foreclosure actions, the OCC reports.

More than 90% of the modifications approved during the third quarter reduced monthly principal and interest payments, and 55.1% reduced payments by 20% or more. These modifications reduced borrowers' monthly payments by an average of $257.

Modifications made under the Home Affordable Modification Program reduced monthly payments by an average of $284.

Of the approximately 3.6 million modifications servicers approved from Jan. 1, 2008, through June 30, 2014, almost 57% were active at the end of the third quarter, and almost 43% had exited the portfolios of the reporting institutions, through payment in full, involuntary liquidation (foreclosure, short sale or deed-in-lieu-of-foreclosure) or transfer to a non-reporting servicer.

Of the approximately 2 million modifications that were active at the end of the third quarter, about 68.6% were current and performing at the end of the quarter, 25.7% were delinquent and 5.7% were in the process of foreclosure.

The mortgages in the portfolio comprise 46% of all residential mortgages outstanding in the U.S. – 23.6 million loans totaling $4.0 trillion in principal balances.

Register here to receive our Latest Headlines email newsletter


Leave a Comment