Second-quarter performance of first-lien residential mortgage loans at seven national banks with large mortgage-servicing portfolios – comprising 33% of all residential mortgages outstanding in the country – was “largely unchanged” from 2017 to 2018, the Office of the Comptroller of the Currency (OCC) reported Friday.
The OCC collects quarterly data on first-lien mortgages from Bank of America, Citibank, HSBC, JPMorgan Chase, PNC, U.S. Bank, and Wells Fargo. The OCC says its second-quarter 2018 Mortgage Metrics Report, covering activity as of June 30, showed 95.6% of mortgages included in the report were current and performing at the end of the quarter; that compares with 95.4% a year earlier.
The report also showed:
- Servicers initiated 29,612 new foreclosures during the second quarter of 2018, down 20.6% from the previous quarter and down 17.7% from a year ago.
- Servicers implemented 32,655 mortgage modifications in the second quarter, and 64.1% of the modifications reduced borrowers’ monthly payments.
- Home forfeiture actions during the quarter – completed foreclosure sales, short sales, and deed-in-lieu-of-foreclosure actions – decreased 28.2% from a year earlier to 18,506.
The report provides additional details about what types of loan modifications were made (interest-rate reduction or freeze, term extension, principal reduction, a combination of these, etc.).
The first-lien mortgages included in the OCC’s quarterly report comprise 33 percent of all residential mortgages outstanding in the United States, or approximately 17.5 million loans totaling $3.28 trillion in principal balances.
OCC Mortgage Metrics Report (2Q 2018)