The Office of the Comptroller of the Currency’s (OCC) Mortgage Metrics Report for the third quarter of 2018 showed year-over-year improvement among first-lien residential mortgages, based on data collected on loans owned by seven national banks representing 32 percent of all outstanding residential mortgages nationwide.
The report indicated an increase in the share of current and performing first-lien mortgages, up to 95.4 percent from 94.8 percent for the third quarter the previous year.
The report’s findings also showed a 3.7 percent decline in foreclosure activity compared to the previous quarter and a 16.8 percent drop from a year prior. However, the percentage of seriously delinquent mortgages remained steady at 1.8 percent from the second quarter to the third, while loans delinquent by 30 to 59 days increased 20 basis points to 2.3 percent from 2.1 percent during that timeframe.
Loan delinquencies included in the report are reported using the Mortgage Bankers Association convention that a loan is past due when a scheduled payment has not been made by the due date of the following scheduled payment.
Additionally, the report noted that servicers implemented 25,701 mortgage modifications in the third quarter and 69.2 percent of the modifications reduced borrowers’ monthly payments.
The report provides mortgage performance information through Sept. 30, covering approximately 17.2 million loans totaling $3.26 trillion in principal balances.