Mortgage loan modifications and payment plans increased significantly as did the rates of delinquency and foreclosures in process in the second quarter of 2009. The OCC and OTS Mortgage Metrics Report said home retention actions increased 21.7%, driven mostly by the Making Home Affordable program. However, 5.3% of all mortgages were seriously delinquent, an 11.5% increase since the first quarter, and 2.9% of all mortgages were in foreclosure, a 16.2% increase from the first quarter. The overall rate of current and performing mortgages fell to 88.6% from 89.8%.


The Mortgage Metrics Report covers nearly 34 million loans totaling almost $6 trillion in principal balances and provides information on their performance through June 30, 2009. The report is issued jointly by the Office of the Comptroller of the Currency and the Office of Thrift Supervision.


The Making Home Affordable program spurred a 73.9% increase in payment plans, while loan modifications dropped by 25.2%. During the quarter, 114,538 payment plans were initiated under the program. If borrowers complete an initial trial period, Making Home Affordable payment plans will be converted to permanent modifications and reported as modifications in subsequent quarters.


Principal and interest payments were reduced in 78.2% of all modified loans, up from 53.5% in the first quarter; 38.6% of modifications reduced payments by 20% or more. Of loans modified in the first quarter, 27.7% were 60 or more days delinquent within three months after modification compared with 28.1% the previous quarter. More than half (56.2%) of all modified loans were 60 or more days delinquent after 12 months compared with a re-default rate after 12 months of 34.1% for loans that had payments decrease by 20% or more.


The OCC and OTS Mortgage Metrics Report is available at



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