WASHINGTON– A new analysis shows the performance of first-lien mortgages declined ever so slightly in the fourth quarter of 2022.
The new report from the Office of the Comptroller of the Currency, which includes data on 22% of all residential mortgage debt outstanding – approximately 12-million loans totaling $2.7 trillion in principal balances – in the U.S. shows that the performance of first-lien mortgages declined 0.1% in Q4 from Q3.
The OCC said its Mortgage Metrics Report for fourth-quarter 2022 showed 97.1% of the mortgages reported on were current and performing at the end of the quarter, compared with 97.2% in Q3. In addition, the agency report shows that despite the teensy decline, Q4 performance was up 0.7% (from 96.4%) from the same period the year before.
Additional Findings
Additional Findings in the OCC report include:
- Of the mortgages covered in the report, 1.3% were “seriously delinquent” – including those 60 or more days past due and all mortgages held by bankrupt borrowers whose payments are 30 or more days past due. The OCC said the figure was unchanged from the third quarter of 2022 but down 1% (from 2.3%) from fourth-quarter 2021.
- Servicers initiated 9,166 new foreclosures in the fourth quarter, down from the previous quarter but a higher volume than a year earlier, the agency said. The OCC said the new foreclosure volume in Q4 2022 is lower than pre-COVID-19 pandemic foreclosure volumes.
- Servicer modifications declined 29.3% from the third quarter to the fourth quarter, with 11,419 modifications completed in Q4 of 2022 compared with 16,160 in the third.
- Of the 11,419 modifications completed during the quarter, 7,303, or 64%, reduced the loan’s pre-modification monthly payment, and 9,597 or 84%, were “combination modifications”—modifications that included multiple actions affecting the affordability and sustainability of the loan, such as an interest rate reduction and a term extension.
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