OCC: Mortgage Performance Declines in Third Quarter

The share of current and performing first-lien mortgages in the third quarter of 2020 was 92.5%, down from 96.4% a year ago, according to the Mortgage Metrics Report released by the OCC today. Mortgage performance in the third quarter declined from a year ago as a result of the COVID-19 pandemic and actions taken by banks to comply with the CARES Act, according to the report.

Foreclosure activity rose 48.2% from the previous quarter, with 369 new foreclosures initiated, and was down 98.3% from a year ago. Mortgages that were considered seriously delinquent declined to 5.8% from 6.8% the previous quarter. Meanwhile, loans that were 30 to 59 days delinquent dipped from 1.9% to 1.5% in the third quarter. The report is generated from seven large national banks representing 27% of all outstanding residential mortgages.

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