The Office of
Comptroller of the Currency (OCC) reported today that 88.6 percent of the
mortgages serviced by selected national federal savings banks were current and
performing at the end of the third quarter.
The OCC Mortgage Metrics
Report released this morning
covers portfolios containing 29.8 million loans, 58 percent of all mortgages
outstanding in the U.S, with $5.1 trillion in principal balances. The
percentage of performing mortgages declined by one tenth of
one percent from
88.7 percent in the second quarter, but increased 0.7 percent from the same period a
The early delinquency rate (30 to 59 days past due) increased 10.4
percent in the third quarter to 3.1 percent, 3.6 percent above the rate in the
third quarter of 2011 while the percentage of mortgages that were 60 or more
days past due or 30 days if the borrower was in bankruptcy, was unchanged
quarter-over-quarter at 4.4 percent but was down 10.8 percent from a years
The report says foreclosure activity remains elevated as
the large numbers
of mortgages and
in process work
through foreclosure prevention and
loss mitigation processes.
Servicers initiated 252,604
foreclosures during the third quarter of 2012
a drop of 95,124 foreclosure starts than the same period a year earlier
and a decrease of 16.5 percent from the
previous quarter. The number of mortgages
in the foreclosure process
declined by 167,730 loans from a year ago to 1,158,289-a decrease of 6.4 percent from the
previous quarter and
12.6 percent from
a year earlier. The number of completed foreclosures
rose to 114,742, a 12.8 percent
increase from the previous
quarter and a 1.3
percent increase from
a year earlier.
The percentage of current and performing government-guaranteed mortgages, which comprise almost one-quarter of the portfolio, declined in the third quarter from 84.9 percent in the second quarter to 84.3 percent. In the third quarter of 2011 85.2 percent of these mortgages were current and performing.
serviced for the two government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac
made up 58 percent
of the mortgages in this report. Current and performing loans made up 93.6
percent of the GSEs' portfolios, a -.04 change from the second quarter and
-0.06 from a year earlier.
There were 382,899 home retention actions initiated by servicers in the third quarter, 8.9 percent fewer than in the second quarter and 16.6 percent less than one year earlier. These actions included modifications and shorter-term payment plans. This was more than double the 180,389 home forfeiture actions initiated during the quarter. Home forfeitures increased 7.7 percent from the second quarter and 4.0 percent from one year earlier; Completed foreclosures increased by 12.8 percent from Q2 and 1.3 percent from a year earlier and short sales by 0.7 percent and 11.1 percent respectively.
Home Affordable Modification Program
(HAMP) modifications increased 10.0 percent
from the previous quarter to 31,540 but decreased
41.5 percent from a year earlier. Other modifications increased to 104,776-an increase of 54.2 percent and 25.3 percent respectively. HAMP
plans decreased by 13.7 percent
from the previous quarter and
25.1 percent from the previous year. Other trial-period
plans decreased 38.7
percent from the previous quarter and 14.2
a year earlier.
interest rates in 77.2 percent of all modifications made during the third quarter of 2012
and extended terms in 64.8 percent. There were principal
deferrals in 19.1 percent, and principal
reductions in 17.1 percent. Modifications
resulted in reduced monthly mortgage payments for nearly 90 percent of affected
Foreclosure starts decreased 16.5 percent quarter over quarter and 27.4
percent year over year. The number of
foreclosures in process decreased 6.4 percent and 12.6 percent
respectively. OCC said these numbers reflect a strengthening economy, a declining number of serious
delinquencies, and an
emphasis on alternatives to foreclosure.