32
Q1 MORTGAGE
PERFORMANCE
MAKES STRIDES
New data from the first quarter continues
to roll in as the Office of the Comptroller of the
Currency (OCC) reported that the performance
of first-lien mortgages in the federal banking
system improved during the first quarter of
2022 by a decent margin.
e OCC Mortgage Metrics Report for
the First Quarter 2022 showed that 96.9% of
mortgages included in the report were current
and performing at the end of the quarter,
compared to 94.2% a year earlier.
It went on to further find that seriously
delinquent mortgages, or those mortgages that
are more than 60 days overdue makes up just
1.8% of the total, down from 2.3% in the prior
quarter and 4.6% a year ago.
All-in-all, servicers initiated 19,524 new
foreclosures in the first quarter of 2022, an
increase from the prior quarter and a year
earlier. e new foreclosure volume in the
first quarter of 2022 is comparable to pre-
COVID-19 pandemic foreclosure volumes and
reflects the expiration of federal foreclosure
moratoria.
"Servicers completed 42,427 modifications
in the first quarter of 2022, a decrease of 10.7%
from the previous quarter," the OCC said in its
report. "Of the 42,427 mortgage modifications,
80.8% reduced borrowers' monthly payments
and 41,318, or 97.4%, were "combination
modifications"—modifications that included
multiple actions affecting the affordability and
sustainability of the loan, such as an interest rate
reduction and a term extension."
"e first-lien mortgages included in
the OCC's quarterly report comprise 22% of
all residential mortgage debt outstanding in
the U.S. or approximately 12.2 million loans
totaling $2.6 trillion in principal balances."
Journal
