WASHINGTON–First-lien mortgages saw a decline in performance during the first quarter of this year, with 94.2% of mortgages being current and performing at the end of the quarter, down from 96.5% a year earlier, according to the Office of the Comptroller of the Currency (OCC).
The OCCU cited the effects of the COVID-19 pandemic for the decline.
The data, released as part of the agency’s Mortgage Metrics Report, show 4.6% of mortgages were seriously delinquent as of March 30, including mortgages that were 60 or more days past due and all mortgages held by bankrupt borrowers whose payments are 30 or more days past due.
Nevertheless, that figure is down from the 5.2% seriously delinquent mortgages reported in the fourth quarter of 2020, but up from 1.4% a year ago.
The OCC said the report is based on 24% of all residential mortgage debt outstanding, and additionally shows a 5.6% increase in new foreclosures from the prior quarter, but a 95.8% decrease from a year ago.
Other Findings
Among the other findings cited in the OCC report:
- Mortgage servicers completed 47,773 mortgage modifications in the first quarter of 2021, up 16.4% from the previous quarter.
- Of total modifications, 55.3% reduced borrowers’ monthly payments, and 27,503, or 57.6%, were “combination modifications” – those which included multiple actions affecting affordability and sustainability of the loan, such as an interest rate reduction and a term extension.