OCC: Mortgage Performance Declines in Fourth Quarter

The share of current and performing first-lien mortgages in the fourth quarter of 2020 was 93.3%, down from 96.5% a year ago, according to the Mortgage Metrics Report released by the OCC today. Mortgage performance in the fourth quarter declined from a year ago as a result of the COVID-19 pandemic according to the report.

While foreclosure activity rose 113.8% from very low levels the previous quarter, just 789 new foreclosures were initiated due to forbearance and moratoriums on foreclosures for several types of mortgages. Foreclosures remained down 96.5% from a year ago. Mortgages that were considered seriously delinquent declined to 5.2% from 5.8% the previous quarter.

Meanwhile, loans that were 30 to 59 days delinquent dipped from 1.5% to 1.3% in the fourth quarter. The report is generated from seven large national banks representing 25% of all outstanding residential mortgages.