Banking


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 tinyurl.com/ygec7ac.

 

SPONSORED REPORT

How the election may affect taxation of business income

This report summarizes recent proposals to reform the U.S. business income tax system and considers the path to enactment of any such legislation.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

Did you follow 2016’s biggest accounting news?

CPAs will remember 2016 as a year of new standards and new faces. How well did you follow the biggest accounting events? The 7 questions in this quiz will help you find out