WASHINGTON–New federal data that reviewed 23% of all residential mortgage debt outstanding at the end of Q2 2020—the first quarter of the COVID-19 pandemic–shows showed that 95% of loans were current and performing at the end of Q2 2020, up from 91.1% at the end of Q2, the first quarter of the COVID-19 pandemic.
According to the analysis by the Office of the Comptroller of the Currency (OCC), the June 30, 2021 findings are drawn from data from banks servicing some 12.8 million first-lien residential mortgage loans with $2.59 trillion in unpaid balances.
The Findings
Among the findings by the OCC:
- The percentage of seriously delinquent mortgages – those 60 or more days past due and all mortgages held by bankrupt borrowers whose payments are 30 or more days past due – was 3.8% in the second quarter of 2021, versus 4.6% in the prior quarter and 6.8% one year earlier.
- Servicers initiated 592 new foreclosures during Q2 2021, a 28.9% decrease from the prior quarter and a 137.8% increase from one year earlier. The OCC said events related to the COVID-19 pandemic, including foreclosure moratoriums, have significantly affected these metrics.
- Servicers completed 39,599 mortgage modifications in Q2 2021, a decrease of 17.1% from the prior quarter. Of the 39,599 mortgage modifications, 53.3% reduced borrowers’ monthly payments and 97.2% were “combination modifications,” or modifications that included multiple actions affecting affordability and sustainability of the loan, such as an interest rate reduction and a term extension, the OCC said.