Performing mortgages dropped to 88.0% from 88.6% as measured by the OCC’s Mortgage Metrics Report released this morning. The report, which measures the performance a 32.7 million loan first-lien mortgages serviced by large national banks and federal savings associations, remains better than the 87.3% reading from this time last year.
The decline in portfolio quality was primarily a result of an increase in early stage delinquencies (30-to-59 days delinquent) which increased 0.4% from the previous quarter and now represent 3% of the portfolio. This increase is partially due to seasonal factors and partly due to a sluggish economy and a high rate of unemployment.
The percentage of mortgages that were seriously delinquent, 60 days or more past due and those held by bankrupt borrowers increased slightly to 4.9% of the portfolio from 4.8% the previous quarter. This represents the first increase in six quarters.
The full report can be found here.