The rate of past-due payments on first-lien home loans that are serviced by the nation’s banks took a turn for the worse on a quarter-over-quarter basis.
Delinquency of at least 30 days, including foreclosures and bankruptcies, on bank-serviced first mortgages ended the second quarter at 6.2 percent.
The 30-day delinquency rate moved higher from the end of the previous three-month period, when 5.8 percent of the residential loans were past due.
The rate, however, retreated from 7.1 percent as of mid-2014.
The numbers were reported by the Office of the Comptroller of the Currency in the OCC Mortgage Metrics Report Second Quarter 2015.
The report was based on 22,116,323 residential first mortgages for $3.7598 trillion that are serviced by eight national banks — including Bank of America, N.A.; JPMorgan Chase Bank, N.A.; Citibank, N.A.; HSBC Bank USA, N.A.; OneWest Bank FSB; PNC Bank, N.A.; U.S. Bank, N.A.; and Wells Fargo Bank, N.A.
The loans covered reportedly account for for 43 percent of all first lien mortgages.
Prime mortgages, those with borrowers whose credit scores are at least 660, made up 76 percent of the loans serviced during the latest period.
Alt-A loans, those to borrowers whose scores ranged from 620 to 659, represented another 10 percent, while subprime mortgages, those with borrowers whose scores are less than 620, accounted for six percent.
No credit scores were available on eight percent of the loans.
On just loans serviced for Fannie Mae and Freddie Mac, the second-quarter 2015 delinquency rate was 2.5 percent. But on first mortgages owned by banks, the 30-day rate was 9.3 percent.
Delinquency jumped to 11.0 percent on government-guaranteed mortgages.
The 60-day delinquency rate on all loans was
2.6 percent as of June 30, 2015. The 60-day rate fell to 1.2 percent on prime mortgages. But it jumped to 6.7 percent on Alt-A mortgages and 12.2 percent on subprime loans.
Of all loans that have been modified since 2008, the rate of those that were at least 60 days delinquent three years after the modification
was 35 percent.
But on government-sponsored enterprise loans, the recidivism rate was just a quarter, while is was half on government-guaranteed loans and 24 percent on portfolio loans.
On loans serviced for private investors, the re-default rate was 42 percent.
The banks initiated 70,728 foreclosures in the second quarter, fewer than the 83,058 started three months earlier and 79,782 initiated a year earlier.
There were 37,275 foreclosures completed in the most-recent period, slipping from the first quarter’s 38,509 and the 48,684 repossessions in the second-quarter 2014.
