July 25, 2012 (Jeff Alan)
Since the beginning of the government’s loan modification efforts in 2008 through the end of the first quarter of 2012, mortgage servicers under the OCC’s supervision have modified 2,543,133 mortgages of which only 50.7 percent remain current or have been paid off according to the Office of the Comptroller of the Currency (OCC).
Of the remaining modifications, 7.1 percent were 30 to 59 days delinquent, 15.1 percent were 60 days or more delinquent, 10.8 percent were in the process of foreclosure, and 6.3 percent had completed the foreclosure process.
HAMP loans are performing better than proprietary mortgage loan modifications. At the end of the first quarter, 68.2 percent of all HAMP modifications were current compared to 53.4 percent of the proprietary modifications
Loans that were modified by 10 percent or more performed better than those that were modified less than 10 percent. Of the loans that were modified which resulted in a payment reduction of over 10 percent, 57.9 percent were current and performing.
Of the loans that were modified which resulted in the payment being reduced by less than 10 percent, only 36.8 percent remained current and performing.
Completed loan modifications fell 9.0 percent from the previous quarter to 121,815. Loan modifications completed through the federal government’s Home Affordable Modification Program (HAMP) fell 13.5 percent to 36,554.
Payment modifications through the government’s Home Affordable Modification Program (HAMP) continued to provide larger relief as the average principal and interest reduction under a HAMP modification was $588 compared to $437 for all modifications.
Newly initiated foreclosures declined by 1.8 percent in the first quarter of 2012 following a 16.0 decline percent in the fourth quarter of 2011. Completed foreclosures increased 5.9 percent from the previous quarter and were 2.7 percent higher than in the first quarter of 2011.
A total of 1,269,921 loans in the OCC’s portfolio were in foreclosure at the end of the first quarter, up 1.8 percent from the previous quarter and up 2.3 percent from the first quarter of 2011.
Of the 31.0 million loans in the OCC’s portfolio, 88.9 percent were current and performing at the end of the quarter, the highest level in three years. Mortgages that were 30-59 days delinquent decreased by 17.3 percent from the previous quarter and were 3.8 percent lower than a year ago.
Mortgages that were 60 days or more past due and delinquent loans to bankrupt borrowers fell by 10.4 percent from the previous quarter and were 6.2 percent below the year ago levels.
Mortgage servicers under OCC’s supervision implemented 352,989 home retention actions in the first quarter, down 23.3 percent from the fourth quarter of 2011, and down 36.7 percent from the same quarter a year ago.
OCC’s quarterly report covers about 60 percent of all first-lien mortgages in the United States, worth $5.3 trillion in outstanding balances.
Tags: OCC, mortgage loan performance, delinquent mortgages, mortgage servicers, foreclosures, loan modifications, HAMP