OCC: Mortgage Performance Up, Foreclosures Down

The Office of the Comptroller of the Currency (OCC) reported that 92.9 percent of first-lien mortgages at large national and federal savings banks were performing as of the end of June, according to the OCC Mortgage Metrics Report, Second Quarter 2014.

The number of performing mortgages increased slightly from Q2 2013, when 90.6 percent of mortgages were reported as performing. The percentage of performing mortgages took a slight nudge downward quarter-over-quarter, from 93.1 percent down to 92.9 percent. The number of delinquent loans was also down, according to OCC – 2.4 percent of all mortgage loans were between 30 and 59 days past due, a decline of 17.3 percent from Q2 2013. The report found that the number of seriously delinquent loans, which are more than 60 days past due, fell by 17 percent from the same period a year ago.

According to the report, foreclosure activity was way down among the servicers who reported. The number of properties in the process of foreclosure stood at 391,591 at the end of Q2, which represented a decline of 47.4 percent from Q2 2013. The number of new foreclosures initiated during Q2 also declined by 47 percent year-over-year, down to 79,781, according to OCC. Completed foreclosures also took a significant downward turn, falling by 39.1 percent down to 48,684 from the same period last year. The report stated that 1.6 percent of all mortgages were in some stage of the foreclosure process in Q2.

OCC attributes the decline in foreclosures to foreclosure prevention assistance, improved economic conditions, and loan transfers not reported. OCC reported that about 47 percent of nationwide mortgages were included in this portfolio, which totaled about 24.1 million loans with approximately $4.1 billion in principal balances.