Banks and thrifts continued to reduce the size of their mortgage servicing portfolios and make improvements on home loan performance.
Banks regulated by the Office of the Comptroller of the Currency serviced 24,141,022 first lien residential loans for $4.0661 trillion in the second quarter.
The regulator explained that OCC-regulated banks service 47 percent of all first-lien residential mortgages that are outstanding.
The details were among many discussed in the second-quarter 2014 OCC Mortgage Metrics Report.
Outstandings fell from the end of March, when there were 24.503,971 loans outstanding for $4.1297 trillion, and tumbled from 26,528,415 loans serviced for $4.5080 trillion as of mid-2013.
Prime mortgages, those where the borrower’s credit score was at least 660, accounted for three-quarters of all outstandings. Alt-A borrowers, those whose scores were between 620 and 659 , represented 10 percent of all loans, and another 6 percent were classified as subprime, where scores were less than 620.
Mortgage delinquency was 7.1 percent as of June 30. Delinquency deteriorated from 6.9 percent as of March 31.
Delinquency has been slashed compared to June 30, 2013, when the rate was 9.4 percent.
On just loans that are government-guaranteed, delinquency fell to 12.1 percent from 14.3 percent from the same period last year.
Loans owned by banks had an 11.7 percent 30-day rate. down from 13.4 percent in the second-quarter 2013.
Delinquency on GSE loans slipped to 3.4 percent from 4.9 percent a year prior.
Banks initiated 79,781 new foreclosures in the second quarter, slowing from 90,852 the prior period and sinking from 150,592 in the year-earlier period.
Foreclosures in process declined to 391,591 from 432,832 three months earlier and 744,389 a year earlier.
Also subsiding were completed foreclosures, to 48,684 from 56,185. In the second-quarter 2014, there were 79,960 completed foreclosures.
