The percentage of first-lien mortgages that were current and performing at the end of the first quarter of 2012 increased to the highest levels in three years, according to a report published today by the Office of the Comptroller of the Currency.
The OCC Mortgage Metrics Report for the First Quarter of 2012 showed percentages of mortgages that were 30 to 59 and 60 to 89 days delinquent also decreased to their lowest levels since the OCC began publishing its report on mortgage performance in first quarter of 2008. The improvement in mortgage performance can be attributed to several factors, including strengthening economic conditions during the quarter, seasonal effects, servicing transfers, and the ongoing effects of home retention programs as well as home forfeiture actions.
Servicers initiated 352,989 new home retention actions—modifications, trial-period plans, and payment plans. During the past five quarters, servicers initiated more than 2.2 million home retention actions.
Servicers have modified 2,543,133 mortgages from the beginning of 2008 through the end of the fourth quarter of 2011. At the end of the first quarter of 2012, 50.7 percent of these modifications remained current or were paid off.
On average modifications implemented in the first quarter of 2012 reduced monthly principal and interest payments by $437, which is 31 percent more than modifications implemented during the first quarter of 2011. HAMP modification reduced payments by $588 on average.