WASHINGTON–The number of first-lien mortgages that were current and performing declined five percentage points in Q2 2020 compared with Q2 2019, according to a new report from the Office of the Comptroller of the Currency (OCC).
According to the OCC’s second-quarter Mortgage Metrics Report, which covers 28% of all residential mortgages outstanding in the U.S., or $2.96 trillion in principle balances and held by seven reporting banks, 91.1% of mortgages evaluated were current and performing as of June 30, vs. 96.1% a year earlier. Of mortgages in the first-quarter report, 96.5% were current and performing.
The OCC further reported foreclosures initiated and home forfeiture actions declined sharply for the quarter and year over year, most likely as the result of foreclosure moratoriums and other protections put in place in response to the COVID-19 crisis. The report shows just 249 new foreclosures during Q2 2020, down 98.7% from the previous quarter and down 98.8% from one year earlier. There were 1,248 home forfeiture actions during the quarter, including completed foreclosure sales, short sales, and deed-in-lieu-of-foreclosure actions, down 90.1% from a year earlier, the OCCU said.
Other Findings
In addition the report found:
- The percentage of seriously delinquent mortgages – those 60 or more days past due as well as those held by bankrupt borrowers whose payments are 30 or more days past due – increased 5.4% from the previous quarter and 5.3% from a year ago.
- Servicers completed 10,984 mortgage modifications in Q2 2020, a decline of 22.9% from the 14,241 modifications reported in Q1
- 89% of the second-quarter modifications reduced borrowers’ monthly payments.