Fewer Foreclosures Started, Completed at Banks

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MORTGAGE EXPERT
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The rate of delinquent payments on bank-serviced mortgages has improved over the past year, though there was no quarter-over-quarter change. Fewer foreclosures were started and completed.

Delinquency of at least 30 days, including foreclosures, on residential loans that are serviced by major U.S. banks was determined to be 4.4 percent as of the end of June.

Delinquency didn’t move compared to the preceding three-month period. But an improvement has been made since mid-2017, when the non-current rate was 4.6 percent.

Those details were derived by the Office of the Comptroller of the Currency in its OCC Mortgage Metrics Report First Quarter 2018. The OCC based its findings on surveys from Bank of America, Citibank, HSBC, JPMorgan Chase, PNC, U.S. Bank and Wells Fargo.

The seven banks serviced a total of 17,473,000 mortgages that had a collective unpaid principal balance of $3.279 trillion as of June 30.

Ninety-one percent of serviced loans were classified as prime mortgages, 2 percent were subprime loans, and 2 percent were Alt-A — or near-prime — mortgages. The remaining 5 percent were described as “other.”

Reflected in the delinquency rate was a 0.5 percent foreclosures-in-process rate, no different than in the first quarter. The foreclosure rate was better, though, than 0.6 percent as of June 30, 2017.

The OCC reported that 29,600 foreclosures were initiated in the second-quarter 2018. The total tumbled from 37,300 three months earlier and 36,000 one year earlier. Year-to-date foreclosures started numbered 66,900 during the first half.

Meanwhile, the banks completed 15,500 foreclosures, fewer than 16,400 during the first quarter
and 21,000 in the same three months last year. Completed foreclosure during the entire first half of this year came to 31,900.

Mortgage Expert

Mortgage Daily Staff

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