Residential loan performance on mortgages serviced by large banks worsened, though there was a decline in new, pending and completed foreclosures.
First-lien delinquency of at least 30 days as of the second quarter, including foreclosures in process,
came to 5.3 percent at federally regulated banks.
The past-due rate rose from 5.1 percent as of the end of the first quarter. But there was an improvement from 6.2 percent as of the second-quarter 2015.
Those were among the details provided in the Office of the Comptroller of the Currency’s OCC Mortgage Metrics Report Second Quarter 2016.
The findings were derived from seven national banks that serviced around 37 percent of all first-lien mortgages outstanding.
Reflected in the most-recent non-current rate was an 0.8 percent rate of foreclosures in process. The foreclosure rate retreated from 0.9 percent three months earlier and 1.4 percent one year earlier.
The OCC said 48,700 foreclosures were started during the three months ended mid-2016. There were 58,900 foreclosures started in the prior three-month period and 70,700 started in the same three-month period in 2016.
The banks completed 25,300 foreclosure in the second-quarter 2016, fewer than the 30,200 repossessions three months previous and 37,300 real-estate owned filings a year previous.
The seven banks
serviced 20.705 million first-lien mortgages for $3.573 trillion as of the second-quarter 2016.
Servicing portfolios were down from 21.124 loans for $3.628 trillion
three months earlier and 22,116 loans for $3.760 trillion one year earlier.
Prime mortgages, those to borrowers with credit scores of at least 660, made up 77 percent of the second-quarter 2016 total.
Another 9 percent were Alt-A mortgages — those to borrowers with credit scores of between 620 and 659 — while 5 percent were subprime mortgages where the borrower had a credit score of less than 620.
Around 89 percent of the loans were serviced for third parties.