Quarterly delinquency on residential loans serviced by banks moved lower, as did the number of foreclosures that were initiated and completed.
Delinquency of at least 30 days, including foreclosures in process, was 5.2 percent as of the third-quarter 2016 on first liens serviced by banks.
The non-current rate improved from the previous quarter’s 5.3 percent. It was also lower than 6.1 percent as of the same quarter a year previous.
Included in the latest quarter’s rate was an 0.8 percent rate for foreclosures in process, no different than in the second quarter but lower than 1.2 percent in the third-quarter 2015.
The Office of the Comptroller of the Currency revealed the statistics in its OCC Mortgage Metrics Report Third Quarter 2016.
Foreclosures initiated totaled 48,000 during the third quarter, fewer than 48,700 three months earlier and 64,200 twelve months earlier. For all three quarters that have been reported so far for 2016, there were 155,600 foreclosures started.
During the three months ended Sept. 30, 2016, there were 25,100 foreclosures completed. That was less than the 25,300 real-estate-owned filings in the prior three-month period and 33,100 in the year-prior period. REO filings numbered 80,600 from Jan. 1, 2016, through Sept. 30.
The OCC derived the latest information from seven national banks — Bank of America, Citibank, HSBC, JPMorgan Chase, PNC, U.S. Bank and Wells Fargo —
that reportedly serviced 20.392 million first-lien mortgages and home-equity loans as of Sept. 30, 2016, for $3.495 trillion — or 36 percent of all U.S. residential mortgage debt outstanding.
Servicing portfolios have diminished from 20.705 million loans for $3.573 trillion three months earlier and 21.850 million loans for $3.727 trillion as of one year earlier.
Prime mortgages, those underwritten for conforming or jumbo programs, accounted for 94 percent of third-quarter 2016 servicing portfolios.
The share of loans that were Alt-A — those to borrowers with prime credit who don’t qualify for conforming or jumbo programs — was 2 percent.
Another 3 percent were subprime loans —
those with prior delinquencies, judgments, bankruptcies or foreclosures on their credit report at the time of underwriting.
