More than 91 percent of borrowers nationwide who received mortgage loan modifications in the second quarter of 2014 had their monthly principal and interest payments reduced, while 56.1 percent of borrowers lowered their monthly payments by 20 percent or more, according to a report released earlier this week by the Office of the Comptroller of the Currency regarding first-lien mortgages at large national and federal savings banks. The OCC Mortgage Metrics Report, Second Quarter 2014 found that borrowers had their monthly mortgage payments reduced by an average of $252.
From January 1, 2008, to March 31, 2014, servicers implemented more than 3.5 million loan modifications. About 59 percent of those loan modifications, or 2.1 million, were active at the end of the second quarter in 2014. The remaining 41 percent were no longer in the portfolios of their respective lenders due to having paid their mortgage in full, having been involuntarily liquidated, or having their loans transferred to non-reporting institutions. OCC reported that about 69 percent of the nearly 2.1 million loan modifications that were active at the end of Q2 were performing, while 25 percent were delinquent and 6 percent were in the process of foreclosure.
The newest revised estimate from the Commerce Department shows economic growth expanded even more than previously thought in the second quarter, reflecting a sharp turnaround from the year's opening months. In its third estimate, the Bureau of Economic Analysis reported Friday that gross domestic product increased at an annualized rate of 4.6 percent in the second quarter. The figure marks a step up from the bureau's last estimate of 4.2 percent growth, which in turn was up from an advance guess of 4.0 percent.