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News Release 2012-55 | March 28, 2012

Overall Mortgage Performance Remained Stable During the Fourth Quarter of 2011, Improved From a Year Earlier

WASHINGTON—The performance of first-lien mortgages serviced by large national and federal savings banks changed very little during the fourth quarter of 2011 and showed improvement from the previous year, according to a report released today by the Office of the Comptroller of the Currency (OCC).

The OCC Mortgage Metrics Report for the Fourth Quarter of 2011 showed delinquencies remained elevated but have declined from a year earlier. Mortgages that were 30 to 59 days delinquent were 3.0 percent of the total serviced portfolio at year end, and mortgages that were seriously delinquent were at 5.0 percent of the total portfolio.

The large number of delinquent loans continues to work through the loss mitigation process. Servicers initiated 460,213 new home retention actions—modifications, trial-period plans, and payment plans. During the past five quarters, servicers initiated more than 2.4 million home retention actions—772,425 modifications, 902,860 trial-period plans, and 731,927 payment plans. Completed foreclosures increased to 116,060—up 2.5 percent from the previous quarter and 22.1 percent from the fourth quarter of 2010. However, the number of new foreclosures initiated during the quarter decreased to 292,173—down 16 percent from the previous quarter. The inventory of foreclosures in process also decreased to 1,272,287—down 4.1 percent from the previous quarter and 3.1 percent from a year earlier.

Other key findings included:

  • At the end of 2011, 27,600,497 mortgages were current and performing, representing 87.9 percent of the portfolio of loans covered by the report during the fourth quarter of 2011.
  • On average, the modifications implemented in the fourth quarter of 2011 reduced borrowers’ monthly principal and interest payments by 26.5 percent, or $430. Modifications made under the Home Affordable Modification Program (HAMP) reduced payments by 36 percent on average, or $593.
  • Modifications that reduced payments by 10 percent or more performed better than those that reduced payments by less. At the end of the fourth quarter of 2011, 55.4 percent of modifications made since the beginning of 2008 that reduced payments by 10 percent or more were current and performing, compared with 34.5 percent of modifications made during that time that reduced payments by less than 10 percent.
  • Since the beginning of 2008, servicers have modified 2,395,565 mortgages through the end of the third quarter of 2011. At the end of the fourth quarter of 2011, 48.3 percent of those modifications remained current or had been paid off. Another 8.5 percent were 30-to-59 days delinquent, and 17.4 percent were seriously delinquent. There were 10.6 percent in the process of foreclosure and 6.1 percent had completed the foreclosure process.

The report covers 31.4 million first-lien mortgages worth $5.4 trillion in outstanding balances, about 60 percent of all first-lien mortgages in the United States. The complete report can be downloaded from the OCC website,

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