A report released by the OCC on Thursday showed improvement in the performance of first-lien mortgages serviced by large national and federal savings institutions during the first quarter of the year.
The report revealed that 90.2 percent of mortgages were current and performing at the end of the first quarter, an increase from 89.4 percent in the fourth quarter of last year. Seriously delinquent mortgages, which are defined as 60 days or more past due or held by bankrupt borrowers who are 30 days or more past due, fell to four percent, compared to 4.4 percent at the end of last year.
Additionally, the number of loans in the foreclosure process at the end of the first quarter fell by 28.6 percent from last year. New foreclosures increased 13.8 percent from the fourth quarter but fell 37.8 percent from one year ago. The number of total, completed foreclosures fell 19.7 percent from the fourth quarter and 30.9 percent from one year ago.
Home retention actions implemented by servicers decreased by five percent from the fourth quarter, and nearly 94 percent of first-quarter mortgage modifications reduced monthly principal and interest payments. More than 56 percent of modifications reduced monthly payments by 20 percent or more.
From the beginning of 2008 to the end of the fourth quarter, servicers have modified more than three million mortgages, 49.5 percent of which were current or paid off as of the end of the first quarter.
Mortgages represented in the report account for 55 percent of all outstanding mortgages in the U.S.—approximately 28 million loans totaling $4.7 trillion in principal balances.