Mortgage Daily Logo

Banks’ Mortgage Servicing, Delinquency Down

Mortgage News

The latest gauge of mortgage servicing by federally regulated banks indicates that their servicing portfolios are contracting and delinquency is improving.

Prime loans, those with borrower credit scores of at least 660, accounted for 76 percent of first mortgages serviced by banks as of the fourth-quarter 2015.

The share of prime residential loans serviced by banks, which is based on the number of loans, turned out to be no different than in the fourth-quarter 2014.

The details were included in the Office of the Comptroller of the Currency’s OCC Mortgage Metrics Report Disclosure of National Bank Mortgage Loan Data Fourth Quarter 2015.

Alt-A loans, where the borrower’s score was at least 620 and up to 659, made up 10 percent of the loan population, also the same as a year earlier.

Borrowers whose scores fell below 620 were considered subprime. The share of loans that were subprime slipped to 5 percent from 6 percent.

The 21.473 million loans for $3.678 trillion serviced by the eight banks covered in the report as of the fourth-quarter 2015 accounted for 41 percent of all first mortgages outstanding.

Servicing portfolios at the surveyed banks fell from 21.850 million loans for $3.727 trillion as of the third quarter and 23.122 million mortgages for $3.906 trillion as of the final quarter of 2014.

The OCC noted that more than 90 percent of the loans covered in the report were serviced for third parties.

The rate of 30-day delinquency, including foreclosures in process, was cut by the banks to 5.9 percent as of the fourth-quarter 2015 from 6.1 percent as of the end of the prior period and 6.8 percent as of the end of 2014.

The foreclosure rate fell to 1.1 percent at the end of last year from 1.4 percent as of Dec. 31, 2014.

The OCC reported that 138,200 foreclosures were completed during all of 2015,
fewer than the 189,400 repossessions the prior year.

Related Posts

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Third-Quarter 2012 Mortgage Litigation Index

Lawsuits involving excessive fees, servicing fees and loan fees beyond state maximums. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Fannie Mae and Freddie Mac Orangeburg County, Richland County, South...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Net Branch Lawsuits

Litigation involving net branch operations. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story PHH Mortgage Corp. Mathews Supreme Court of Virginia na Court held that the term "branch office" includes not only...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Whistleblower Lawsuits

Litigation related to loan servicing, including escrow issues, transfer of servicing and servicing borrowers in bankruptcy and foreclosure.   Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Bank of...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming paperwork has been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and furniture need to...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand-new mortgage loan can be a difficult task, especially for first-time homeowners.   After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first...

Newsletter

Don’t worry, we don’t spam