Actions by national banks and thrifts to prevent home mortgage foreclosures increased faster than new foreclosures in the second quarter of 2008, according to the OCC and OTS Mortgage Metrics Report. The report, issued jointly by the Office of the Comptroller of the Currency and the Office of Thrift Supervision, replaces the separate reports previously issued by the federal banking regulators.
The report contains data on 34.7 million first-lien mortgages, worth more than $6.1 trillion, held or serviced by national banks and thrifts. The data is collected from nine national banks and five savings associations, which hold approximately 60% of all first-lien mortgages in the United States.
The report shows that new loan modifications increased by more than 80% from January to June of 2008. Loss mitigation actions relative to new foreclosures averaged more than 87% during the second quarter, an increase of 12 percentage points from the first quarter.
More than nine out of 10 mortgages remained current although credit declined in all risk categories. Early stage delinquencies (30 to 59 days past due) and seriously delinquent mortgages (60 or more days past due, or 30 or more days past due in the case of bankrupt borrowers) also increased.