95.6% of first-lien mortgages at top banks current in 2Q, pace of new foreclosures down, OCC report shows

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.

From the OCC’s report: The above shows the number of loans in delinquency and foreclosures in process. It gives the number of loans in each category of delinquency from 2Q 2016 through 2Q 2018.

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 Reports Mortgage Performance Unchanged

OCC Mortgage Metrics Report (2Q 2018)