Mortgage Lates Up at Banks, Foreclosures Down

First-lien mortgage delinquency of at least 30 days, including loans that are in the process of foreclosure,
concluded the third quarter at 5.2 percent.

The non-current rate deteriorated compared to 4.6 percent as of mid-2017. But there was no change in the rate versus the third-quarter 2016.

The Office of the Comptroller of the Currency provided those details and more in its OCC Mortgage Metrics Report Third Quarter 2017.

While first-lien mortgages and home-equity loans are reflected in the data, junior liens, home-equity lines of credit and home-equity conversion mortgages are excluded.

OCC data was extrapolated from seven national banks — Bank of America, Citibank, HSBC, JPMorgan Chase, PNC, U.S. Bank and Wells Fargo — that serviced 18.428 million loans with an aggregate unpaid principal balance of $3.319 trillion as of Sept. 30, 2017. The total was 33 percent of all U.S. residential loans outstanding.

Included in the most-recent rate was an 0.6 percent foreclosure rate and a 2.1 percent 90-day rate.

The OCC said
34,266 new foreclosures were initiated in the three-months ended Sept. 30, fewer than 35,974 in the preceding three-month period. That brought the year-to-date total to 117,786.

Completed foreclosures numbered 22,275 during the third-quarter 2017, down from 25,776 three months earlier. So far during 2017, there have been 76,747 foreclosures completed.

Prime mortgages, which are conforming and jumbo loans eligible for standard programs and pricing, made up 90 percent of the banks’ servicing portfolios. Another 2 percent were Alt-A, loans to prime borrowers who don’t meet criteria for conforming or jumbo programs. Subprime mortgages — those with borrowers who have weakened credit histories, reduced repayment capacities or incomplete credit histories — made up 3 percent of the loans. The remaining 5 percent were classified as “other.”