The Office of the Comptroller of the Currency released its first quarterly Mortgage Metric Report for 2017 on Thursday, which is a disclosure of first-lien and closed-end mortgage data supplied by seven national banks, including Bank of America, Citibank, HSBC, JPMorgan Chase, PNC, U.S. Bank, and Wells Fargo.
Through the end of March, these seven banks serviced around 19.5 million mortgage loans with a cumulative total unpaid principle balance of $3.42 trillion, representing 35 percent of all residential mortgage debt in the country. Mortgage performance improved year-over-year, with performing loans up to 95.6 percent from 94.9 percent.
In the realm of foreclosure actions, reporting banks started 47,546 new foreclosures, which is a month-over-month increase of 4.5 percent, but a year-over-year decrease of 19.3 percent. Completed foreclosure sales, short sales, and deeds-in-lieu-of-foreclosure—home forfeiture actions—were also on the decline year-over-year to 28,696, or 25.3 percent.
The number of modifications rose to 35,137 (8.7 percent) compared to Q4 of 2016’s total of 32,312. Ninety-four-point-five of those modifications were “combination modifications,” or loans that had multiple actions on them such as an extension or change to the loan’s interest rate. Loans with only one action present numbered 1,823, and the remaining 120 loans did not have a designated modification type.
In breaking down combination modifications a majority of the 33,194 loans included capitalization of delinquent interest/fees and an interest rate reduction or freeze—92.0 percent and 82.1 percent respectively. Term extensions were included in 90.5 percent of the reported loans, but only 4.9 percent included a principal reduction, the smallest segment of the group.
Of all the modifications, 88.3 percent reduced the loans monthly payment after said modification was applied.
According to the report, 12.3 percent of loans reported modified in the first quarter of 2017 were 60 or more days past due, or in the process of foreclosure.