87.2 Percent of Mortgages Current

December 21, 2009 No Comments »


Some interesting tidbits from the OCC and OTS Mortgage Metrics Report for the Third Quarter 2009:

The percentage of current and performing mortgages fell to 87.2 percent of the servicing portfolio as of September 30, down from 88.6 percent a quarter earlier and 91.6 percent a year ago.

That meant 3.4 percent of mortgages were 30-59 days delinquent, 6.2 percent were seriously delinquent (60-90+ days late), and 3.2 percent were in the process of foreclosure.

Government-guaranteed mortgages continued to perform even worse, with just 83 percent current and 8.2 percent seriously delinquent.

These types of loans now make up 15.5 percent of all mortgages in the portfolio, a 10.4 percent increase from the third quarter and a 28.9 percent increase from a year ago.

The bulk, 77 percent, are FHA loans, with 19 percent VA loans and the remaining four percent other government-guaranteed loans.

Mortgages held by Fannie Mae and Freddie Mac are performing the best, with 92.1 percent on-time, thanks in part to a higher concentration of prime loans.

Unsurprisingly, option arms continue to perform very poorly, with just 67.7 percent current as of the end of the third quarter.

In the second quarter, 70.3 percent were in good standing, and 82.1 percent were on-time a year ago.

Thankfully, the more than 850,000 outstanding option arms represent just 2.5 percent of the total servicing portfolio.

Of the option arms modified, more than half received principal balance reductions because of the nature of the loans, which by design can experience negative amortization.

The joint OTS/OCC report covers about 34 million home loans with an aggregate balance of approximately $6 trillion.

(photo: owenfm)

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