Foreclosures were up for first-lien mortgages in the first quarter of the year – but down from the same point a year ago – and trading revenue was up from the previous quarter, the national bank regulator said Tuesday.
In separate reports on mortgage performance and trading revenue, the Office of the Comptroller of the Currency (OCC) noted the changes in both areas.
In mortgage performance, the OCC said 97.7% of mortgages included in the report were current and performing at the first quarter’s end, a slight increase from 97.6 percent in 2025. Seriously delinquent mortgages (60 days or more in arrears and all mortgages held by bankrupt borrowers whose payments are 30 or more days past due) were unchanged from a year ago.
However, foreclosures were up from year-end 2025, but down from the first quarter of a year ago, the OCC said.
First-lien mortgage lending at national banks makes up 19.1% of all residential mortgage debt outstanding in the United States or approximately 10.2 million loans totaling $2.6 trillion in principal balances, according to the OCC.
On trading revenue, the OCC said it was up 11.4% from year-end 2025 and 5.6% from a year ago (for $1.7 billion and $862 million, respectively).
Although nearly 1,200 banks held derivatives at the end of the first quarter, the OCC said, a small group of banks continue to dominate the market. Four large banks held 79.1% of the total banking industry notional amount of derivatives.
In other key points on trading revenue, the OCC said:
- initial credit exposure from derivatives before netting increased in the first quarter of 2026 compared with the fourth quarter of 2025. Net current credit exposure increased $84.1 billion, or 34.8%, to $325 billion.
- derivative notional amounts increased in the first quarter of 2026 by $88.4 trillion, or 42.5%, to $296.5 trillion.
- derivative contracts remained concentrated in interest rate products, which totaled $203.2 trillion or 68.5% of total derivative notional amounts.
OCC Reports Mortgage Performance for First Quarter of 2026
OCC Reports First Quarter 2026 Bank Trading Revenue
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