Both the rate of delinquency and the number of completed foreclosures declined at banks. New foreclosure filings, however, increased.
Delinquency of at least 30 days, including loans in foreclosure, on first mortgages that are serviced by federally supervised banks
finished September at 7.0 percent.
The 30-day rate edged down from 7.1 percent the prior quarter and dropped 160 basis points from the year-earlier period.
The statistics were among many outlined in the OCC Mortgage Metrics Report for the third-quarter 2014 from the Office of the Comptroller of the Currency.
The report reflects performance data on 23,562,663 residential first liens for $3.9817 trillion that are serviced
by seven national banks and one federal savings association. These loans account for 46 percent of all U.S. first mortgages.
Servicing portfolios at these banks have retreated from 25,643,169 loans serviced for $4.3578 trillion as of the third-quarter 2013.
Of the most-recent total, more than three-quarters were prime mortgages — those to borrowers with credit scores of at least 660.
Borrowers with with scores between 620 and 659 are considered Alt-A and accounted for 10 percent of outstandings, while scores less than 620 were deemed to be subprime and represented just 6 percent of the total.
On the 13,743,169 loans serviced for the government-sponsored enterprises, the delinquency rate was just 3.3 percent.
But when looking at just the 2,269,181 loans that were owned outright by banks, the 30-day rate jumped to 11.1 percent.
The OCC explained that delinquency rates on bank-owned loans were worse than on GSE loans because of concentrations in nontraditional loans, weaker markets and delinquent loans repurchased from investors.
The 5,849,757 loans guaranteed by the government had a 12.0 percent delinquency rate.
The 60-day past-due rate on all loans was 3.1 percent as of the most-recent period.
On prime mortgages, the rate dropped to 1.5 percent, while it jumped to 7.7 percent on Alt-A loans and soared to 13.4 percent on subprime mortgages.
Foreclosures started during the quarter were 82,668, climbing from 79,782 in the three months ended June 30. But the number improved from 130,592 foreclosures initiated in the three months ended Sept. 30, 2013.
The servicers completed 45,245 foreclosures in the third-quarter 2014, fewer than the 48,684 repossessions in the second quarter and the 82,841 real-estate-owned filings in the third-quarter 2013.
That left 353,906 foreclosures in process at the end of September, less than the 391,593 three months earlier and off significantly from the 604,763 foreclosures in process as of a year earlier.
