1st mortgage performance inches up, foreclosures down

Performance of first mortgages improved slightly at national banks in the second quarter of this year compared to the same quarter in 2016, and foreclosures activity has decreased from the first quarter of 2017, according to a report issued by the Office of the Comptroller of the Currency (OCC) Friday.

In its Mortgage Metrics Report, Second Quarter 2017, the OCC reported that 95.4% of mortgages included in the report were current and performing at the end of the second quarter of 2017, compared with 94.7% from a year earlier.

Reporting servicers initiated 35,974 new foreclosures during the second quarter of 2017, a 24.3% decrease from the previous quarter and a decrease of 26.2% from a year earlier, the agency reported. Servicers implemented 30,523 mortgage modifications in the second quarter of 2017. Borrowers’ monthly payments were reduced by 83% of the modifications, the comptroller said.

Overall, first mortgages at national banks comprise more than one-third (34%) of all residential mortgages outstanding in the United States, or approximately 19 million loans totaling $3.36 trillion in principal balances, the OCC reported.

OCC Mortgage Metrics Report, Second Quarter 2017