The quarterly performance on residential loans that are serviced or owned by banks improved. In addition, foreclosures activity on bank-serviced loans subsided.
Loans to prime borrowers, those with credit scores of at least 660, accounted for 77 percent of the banks’ overall mortgage servicing portfolios in the third quarter.
Another 10 percent were to Alt-A borrowers whose scores fell between 620 and 659, while six percent were to subprime borrowers with scores less than 620.
The details were outlined by the Office of the Comptroller of the Currency in its third-quarter 2015 OCC Mortgage Metrics Report.
The results reflect data from eight banks that are responsible for servicing 21,849,975 loans for $3.727 trillion — or about 42 percent of all first-lien residential mortgages.
Loans that were at least 30 days past due or in foreclosure or bankruptcy accounted for 6.1 percent of all loans as of Sept. 30.
The non-current rate improved from 6.2 percent three months earlier and seven percent one year earlier.
On just the 9.9 percent of the serviced loans that were owned by the banks, the non-current rate was 9.1 percent. Out of the 23.0 percent of the loans that were guaranteed by the government, the rate was 11.4 percent, while it stood at just 2.5 percent on the 60.0 percent of loans that were backed by the government-sponsored enterprises.
For all loans, the 90-day rate, including bankruptcies and foreclosures, was 2.6 percent.
The rate of 90-day delinquency on prime loans was 1.2 percent. Serious delinquency jumped to 6.8 percent on Alt-A loans and 12.4 percent on subprime mortgages.
Included in the overall third-quarter 2015 non-current rate was a 1.2 percent foreclosure rate.
Newly initiated foreclosures fell to 64,156 from 70,728 three months earlier and 82,668 a year earlier. For all of the first nine months of this year, there have been 217,942 foreclosures started.
That left 269,751 foreclosures in process, fewer than the second quarter’s 299,500 and the third quarter of last year’s 353,906.
After all was said and done, the banks completed 33,106 foreclosures during the third-quarter 2015. Repossessions numbered 37,275 in the
previous quarter and 45,245 in the year-earlier period.
From Jan. 1, 2015, through Sept. 30, there were
108,890 mortgages converted to real estate owned.
