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Q1 Mortgage Performance Makes Strides

New data from the first quarter continues to roll in as the Office of the Comptroller of the Currency (OCC) reported that the performance of first-lien mortgages in the federal banking system improved during the first quarter of 2022 by a decent margin. 

The OCC Mortgage Metrics Report for the First Quarter 2022 showed that 96.9% of mortgages included in the report were current and performing at the end of the quarter, compared to 94.2% a year earlier. 

It went on to further find that seriously delinquent mortgages, or those mortgages that are more than 60 days overdue makes up just 1.8% of the total, down from 2.3% in the prior quarter and 4.6% a year ago. 

All-in-all, servicers initiated 19,524 new foreclosures in the first quarter of 2022, an increase from the prior quarter and a year earlier. The new foreclosure volume in the first quarter of 2022 is comparable to pre-COVID-19 pandemic foreclosure volumes and reflects the expiration of federal foreclosure moratoria. 

“Servicers completed 42,427 modifications in the first quarter of 2022, a decrease of 10.7% from the previous quarter,” the OCC said in its report. “Of the 42,427 mortgage modifications, 80.8% reduced borrowers’ monthly payments, and 41,318, or 97.4%, were “combination modifications” - modifications that included multiple actions affecting the affordability and sustainability of the loan, such as an interest rate reduction and a term extension.” 

“The first-lien mortgages included in the OCC’s quarterly report comprise 22 percent of all residential mortgage debt outstanding in the United States or approximately 12.2 million loans totaling $2.6 trillion in principal balances.” 

Click here to view the 14-page report in its entirety. 

About Author: Kyle G. Horst

Kyle G. Horst is a reporter for DS News and MReport. A graduate of the University of Texas at Tyler, he has worked for a number of daily, weekly, and monthly publications in South Dakota and Texas. With more than 10 years of experience in community journalism, he has won a number of state, national, and international awards for his writing and photography including best newspaper design by the Associated Press Managing Editors Group and the international iPhone photographer of the year by the iPhone Photography Awards. He most recently worked as editor of Community Impact Newspaper covering a number of Dallas-Ft. Worth communities on a hyperlocal level. Contact Kyle G. at [email protected]
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