Regulators Point to Improving Loan Performance Across-the-Board

By
Real Estate Agent with Palatium Auction and Appraisal Service, Real Estate Auctions, Estate, Moving, Downsizing Auctions 618-233-1000 USPAP Appraisals proesch@ptauctions.net

Performance of home mortgages serviced by the largest national banks and federally regulated thrifts improved earlier this year, for the first time in more than 24 months.

According to a report released Wednesday by the Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS), home loan delinquency rates dropped during the first quarter of 2010, with improvements in all categories – prime, Alt-A, and subprime.

Mortgages in all stages of pre-foreclosure delinquency improved during the three-month period. Serious delinquencies declined to 6.5 percent of the portfolio, down 7.7 percent from the previous quarter. Loans 30 to 59 days past due declined 17.7 percent to 2.8 percent of the loan pool.

The regulators’ Mortgage Metrics Report shows that the ratio of mortgages that were current and performing increased to 87.3 percent of the studied loan portfolio – an increase of 1 percent from the previous quarter.

Foreclosure statistics, though, increased “substantially,” the agencies said, which may account, at least partly, for the improvement in delinquency numbers as prevention options were exhausted and more loans were pushed through the pipeline and liquidated.

Compared with the previous quarter, newly initiated foreclosures increased nearly 19 percent to almost 370,536 in Q1. Foreclosures in process increased nearly 9 percent to 1,170,874. Completed foreclosures were also up, nearly 19 percent to 153,654.

At the same time, the number of modifications and other home retention actions also increased. Overall, the number of actions to prevent avoidable foreclosures increased more than 5 percent from the previous quarter and more than 61 percent from a year earlier. The report notes that servicers initiated 1.7 times as many modifications and payment plans as new foreclosures last quarter.

Servicers implemented nearly 630,000 new home retention actions in the first quarter, including nearly 100,000 modifications and 190,000 trial plans through the administration’s Home Affordable Modification Program (HAMP). Another 130,000 mods and 93,000 trials were initiated under non-government programs.

The sustainability of modifications continued to improve, with more than 87 percent of loan modifications reducing payments, and nearly 55 percent reducing payments by 20 percent or more, according to the report.

Home retention efforts may be increasing, but re-default rates on modified mortgages remain extremely elevated. The OCC and OTS report that 57 percent of all modified mortgages were 60 or more days past due after 12 months.

The regulators say, though, that newer modifications appear to be performing better, a point that Barclays Capital also emphasized in a recent report.

Short sales continued to grow in Q1 as an alternative to foreclosure, increasing 9.2 percent to 41,033 – more than doubling from a year ago.

The OCC and OTS Mortgage Metrics Report presents data on first-lien residential mortgages from the nine banks and two thrifts with the nation’s largest mortgage-servicing portfolios. The data represent more than 64 percent of all first-lien residential mortgages outstanding in the country. More than 90 percent of the mortgages in the portfolio were serviced for third parties because of loan sales and securitization. At the end of March 2010, the reporting institutions serviced almost 34 million first-lien mortgage loans, totaling nearly $6 trillion in outstanding balances.

Read the Story

Posted by

Paul
Paul Roesch
Realtor, Auctioneer, CAI, AARE, CES, GPPA, ATS
Marketing Director 
Certified Distressed Property Expert, CDPE
618-407-8479 cell
proesch@ptauctions.net

 Add me as a Friend on Facebook Paul M. Roesch                                                                        

Free Sign Bidder Early Bird Notification of Upcoming Auctions

Auctionitnow  Father Time Auctions St Louis MO

All original text, video, and photo content is the exclusive property of Paul Roesch and / or Palatium Auctions (the Company) and may not be used without expressed written permission. All information deemed reliable but not guaranteed. All personal, real and intellectual property is subject to prior sale, change or withdrawal. Neither the Company or information provider(s) shall be responsible for any typographical errors, misinformation, and misprints and shall be held totally harmless. Listing(s) information is provided for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The Company has no control over the quality, safety or legality of the Auction Items listed, the truth or accuracy of the listings or any other information provided by Sellers about the Items. Listings may be sold, withdrawn at any time or subject to change without notice.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
Missouri Saint Louis City
Tags:
real estate agent
father time auctions and real estate
paul roesch accredited real estate auctioneer
improving loan perfomrance

Post a Comment
Spam prevention
Spam prevention
Post a Comment
Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
402,475

Paul Roesch CDPE 618-233-1000

Real Estate Auctioneer CAI St Louis MO Auctions
How Does an Auction Work
*
*
*
*
Spam prevention

Additional Information