OCC: Mortgage Performance Continued To Improve In Q3

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.


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