The performance of first-lien mortgages in the federal banking system improved during the first quarter of 2022, according to an OCC report issued today.
The OCC Mortgage Metrics Report showed that 96.9% of mortgages were current and performing after the quarter, when compared with 94.2% last year. The percentage of seriously delinquent mortgages-mortgages which are 60 or even more days past due and all sorts of mortgages held by bankrupt borrowers whose payments are 30 or more days past due-was 1.8% in the first quarter of 2022, compared to 2.3% in the prior quarter and 4.6% a year ago.
Servicers initiated 19,524 new foreclosures within the first quarter of 2022, a rise in the prior quarter and a year earlier as pandemic-related accommodations wound down. New foreclosure volume was similar to pre-COVID-19 pandemic foreclosure volumes. Servicers completed 42,427 adjustments to Q1, a loss of 10.7% in the previous quarter. Of the modifications, 80.8% reduced borrowers' monthly payments, 97.4% were 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 contained in the OCC's quarterly report comprise 22% of all residential mortgage debt outstanding in the United States or approximately 12.Two million loans totaling $2.6 trillion in principal balances.
