Delinquency on home loans owned by banks continued to improve on a quarterly basis as the foreclosure and repossession rate retreated. New foreclosure filings, however, rose.
As of March 31, delinquency of at least 30 days — including bankruptcies and foreclosures — was 5.8 percent on residential first liens serviced by banks.
The
non-current rate declined from the end of last year, when it was 6.8 percent. Bank-serviced mortgage delinquency has declined each quarter since mid-2014.
The improvement was even more significant versus the 6.9 percent 30-day rate in place as of the same point in 2014.
These details and more were outlined in the OCC Mortgage Metrics Report First Quarter 2015.
The study looked at 22,665,659 loans serviced by banks for
$3.8213 trillion as of March 31. The loans reportedly accounted for 43.9 percent of all first-lien residential loans.
On just government-sponsored enterprise loans, the non-current rate was 2.6 percent, It jumped to 9.7 percent on mortgages owned by banks, and was 10.1 percent on mortgages guaranteed by the government.
Loans at least 60 days delinquent represented 2.6 percent of the most-recent total.
Borrowers with credit scores of 660 or more are classified by the OCC as prime borrowers and accounted for 76 percent of the total bank mortgages. The serious delinquency rate on this segment of the portfolio was 1.2 percent.
Those with scores between 620 and 659 are considered Alt-A and represented 10 percent. The 60-day rate for this group was 6.5 percent.
Borrowers whose scores were less than 620 are classified as subprime and made up six percent of banks’ servicing portfolios. The rate of serious delinquency for subprime borrowers was 11.4 percent.
Of all bank loans modified in 2008, nearly two-thirds were current as of the most-recent period. Looking at loans modified last year, the current rate jumped to almost three-quarters.
On government-sponsored enterprise loans, re-default rates three years after modification were a quarter. The re-default rate jumped past half on government-guaranteed loans.
Modified mortgages held by private investors had a 43 percent recidivism rate, while the rate was just a quarter on portfolio loans.
New foreclosures were initiated on 83,058 loans during the first-quarter 2015, climbing from 75,395 three months earlier but retreating from 90,852 a year earlier.
The foreclosure rate on the collective bank servicing portfolio was trimmed to 1.3 percent from 1.4 percent in the fourth-quarter 2014 and 1.8 percent in the first-quarter 2014.
Mortgage servicers and their service providers completed 38,509 foreclosures during the three months ended March 31, 2015, fewer than the 39,331 repossessions in the final quarter of last year and the 56,185 real-estate-owned filings in the first quarter of last year.
