The performance of first-lien mortgages in the federal banking system improved throughout the first quarter of 2022, according to an OCC report issued today.
The OCC Mortgage Metrics Report showed that 96.9% of mortgages were current and performing at the end of the quarter, compared to 94.2% last year. The percentage of seriously delinquent mortgages-mortgages that are 60 or even more days gone by due and all mortgages held by bankrupt borrowers whose payments are 30 or more days gone by due-was 1.8% within the first quarter of 2022, when compared with 2.3% in the prior quarter and 4.6% last year.
Servicers initiated 19,524 new foreclosures within the first quarter of 2022, an increase in the prior quarter along with a year earlier as pandemic-related accommodations wound down. New foreclosure volume was comparable to pre-COVID-19 pandemic foreclosure volumes. Servicers completed 42,427 adjustments to Q1, a decrease of 10.7% from the previous quarter. From the modifications, 80.8% reduced borrowers' monthly obligations, 97.4% were modifications that included multiple actions affecting the affordability and sustainability of the loan, for example mortgage loan reduction and a term extension.
The first-lien mortgages included in the OCC's questionnaire comprise 22% of residential mortgage debt outstanding in the usa or approximately 12.Two million loans totaling $2.6 trillion in principal balances.