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Agency Review » Delinquency Rates 5.59% fannie single family freddie single family 5.07% may 2012 fannie » 3.57% freddie » 3.50% 4.55% 4.03% 3.51% 3.00% 2.48% note: Delinquent loans reported here include all single-family loans 90 or more days past due as a percentage of portfolio size. Historical data covers a moving 12-month period. Source: Fannie Mae May 2012 Monthly Summary and Freddie Mac May 2012 Monthly Volume Summary 1.96% 1.44% 0.92% 0.40% /12 /12 05 /12 04 03 /12 /12 02 /11 01 12 /11 /11 11 10 /11 /11 09 /11 07 08 /11 /11 06 /11 05 04 /11 /11 03 /11 02 01 /10 /10 12 11 /10 /10 09 10 /10 /10 07 08 /10 /10 05 06 Current Mortgages at Three-Year High The rate of delinquent mortgages fell to a three-year low in the first quarter of 2012, according to the Office of the Comptroller of the Currency (OCC). The OCC analyzed first-lien residential mortgages serviced by a select group of national and federal savings banks, comprising 60 percent of all mortgages outstanding in the United States—31 million loans totaling $5.3 trillion in principal balances. The federal regulator found the percentages of mortgages between 30 and 59 days delinquent and between 60 and 89 days delinquent both fell to their lowest levels since the OCC began publishing mortgage performance data in Q1 2008. The OCC says 88.9 percent of outstanding mortgages were current and performing as of the end of March. The percentage of mortgages 30–59 days delinquent decreased by 17.3 percent from Q 4 2011 and 3.8 from Q1 2011. The percentage of mortgages seriously delinquent—which the OCC defines as 60 or more days past due or for mortgages held 20 by bankrupt borrowers 30 or more days past due—was 4.5 percent, down 10.4 percent from the previous quarter and down 6.2 percent year-over-year. The number of newly initiated foreclosures decreased from the previous quarter by 1.8 percent and was down 8.1 percent from the same period in 2011, the OCC said. The regulator's report also showed that while the number of foreclosures in process increased slightly (0.6 percent) from the previous quarter, it decreased 3 percent from the same time frame in 2011. The percentage of mortgages in the process of foreclosure at the end of the first quarter, however, increased by 1.8 percent from the previous quarter and 2.3 percent year-over-year. The OCC characterized mortgage performance overall as "improved" and attributed the first-quarter results to strengthening economic conditions, seasonal effects, servicing transfers, and ongoing foreclosure prevention initiatives. Servicers implemented 352,989 new home retention actions—modifications, trialperiod plans, and payment plans—during the first quarter, nearly twice the number of completed foreclosures but still a 23.3 percent decrease from the number of home retention actions recorded in the previous quarter and a 36.7 percent decrease when compared with year-ago data. Servicers have been emphasizing alternative solutions to foreclosure, and as a result, retention actions have fallen with delinquency rates as servicers run out of options to help homeowners who have not already received assistance, the OCC explained. Of the more than 2.5 million loans modified by servicers from 2008 to 2011, 50.7 percent were either current or were paid off by the end of 2012's first quarter while 7.1 percent were 30–59 days delinquent and 15.1 percent were seriously delinquent. Nearly 11 percent were in the foreclosure process as of the end of March, and 6.3 percent were foreclosed. The OCC notes that modifications made more recently were more focused on reduced payments and increased affordability and outperformed earlier modifications. HAMP-modified loans also outperformed others—68.2 percent of HAMP modifications implemented since Q 3 2009 remained current as of the end of the first quarter compared with 53.4 percent of other modifications made during the same period. The better performance reflects HAMP's emphasis on reduced payments, income verification, and affordability—traits that nearly all performing loans had in common. Mortgages serviced for Fannie Mae and Freddie Mac made up 59 percent of the mortgages in reporting servicers' portfolios. The performance of GSE-backed mortgages remained relatively consistent over the last year with 93.7 percent current and performing of 2012 at the end of the first quarter a slight increase from 93.2 percent at the same time last year. Portfolios of GSE mortgages tend to perform better because they contain prime loans. STAT INSIGHT 325 Banks that have not repaid Treasury for bailout money received through TARP.  Source: U.S. Department of the Treasury

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