Delinquency and foreclosure rates continued to fall in the second quarter of 2013 according to the Mortgage Metrics Report issued by the Office of the Comptroller of the Currency (OCC). The Mortgage Metrics Report examined first-lien mortgages held by the top seven lenders in the United States, 52 percent of all residential mortgages.
“Strengthening economic conditions, servicing transfers, home retention efforts, and home forfeiture actions contributed to improving performance of home mortgages in the second quarter of 2013,” the report said. “At the end of the second quarter of 2013, 90.6 percent of mortgages serviced by the reporting servicers were current and performing, compared with 90.2 percent at the end of the previous quarter and 88.7 percent a year earlier. The percentage of mortgages that were 30 to 59 days past due
was 2.9 percent, up 11.6 percent from the previous quarter and up 1.8 percent from a year ago. The percentage of mortgages in this report that were seriously delinquent – 60 or more days past due or held by bankrupt borrowers whose payments were 30 or more days past due – decreased to 3.8 percent compared with 4.0 percent at the end of the previous quarter and 4.4 percent a year ago.”
Foreclosure activity in the second quarter fell to its lowest level since the report’s inception in 2008. The number of loans in foreclosure decreased 39.8 percent from a year ago to 744,369. The number of newly initiated foreclosures also fell to 150,592, the lowest level since early 2008 and a 50.8 percent decrease from a year ago.
The percentage of mortgages that were seriously delinquent in the second quarter fell 15.0 percent from a year ago, to 3.8 percent of the total.
Serivicers implemented 314,672 home retention actions – including modifications, trial-period plans, and shorter-term payment plans – in the second quarter, compared to 121,746 home forfeiture actions – including completed foreclosures, short sales, and deed-in-lieu of foreclosure actions.
Mortgages serviced for Fannie Mae and Freddie Mac made up 57.1 of the mortgages in the Mortgage Metrics Report. The percentage of those mortgages that were current and performing was 95.1 percent, a 0.5 percent increase from last quarter and a 1.6 percent increase from last year.