More borrowers are paying their mortgages on time, according to a first-qurter 2013 report on first-lien mortgages serviced by large national and federal savings banks.
The report showed that 90.2 percent of mortgages were current and performing at the end of the first quarter, compared with 89.4 percent the prior quarter and 88.9 percent a year earlier.
The number of loans in the process of foreclosure at the end of the first quarter of 2013 decreased by 28.6 percent from a year ago to 907,231, said the report released Thursday by the Office of the Comptroller of the Currency (OCC).
Servicers initiated 178,356 new foreclosures during the quarter — a 13.8 percent increase from the previous quarter but a 37.8 percent decrease from a year ago. The number of completed foreclosures fell to 84,972, a 19.7 percent decrease from the previous quarter and a 30.9 percent decrease from a year ago.
The data is “evidence that the strengthening economic conditions, servicing transfers, home retention efforts, and home forfeiture actions” have contributed to improving the performance of home mortgages, an OCC statement said.
Seriously delinquent mortgages — 60 or more days past due or held by bankrupt borrowers whose payments are 30 days or more past due — decreased to 4.0 percent compared with 4.4 percent at the end of 2012 and 4.5 percent a year ago.
The percentage of mortgages that were seriously delinquent has decreased 10.4 percent from a year earlier.
The percentage of early-stage delinquencies, mortgages that were 30-59 days past due, was 2.6 percent, down 9.3 percent from the previous quarter but up 3.0 percent from a year ago.
Servicers have modified 3,021,617 mortgages from the beginning of 2008 through the end of the fourth quarter of 2012, the OCC said.
At the end of the first quarter of 2013, 49.5 percent of these modifications were current or paid off. Another 6.4 percent were 30 to 59 days delinquent, and 12.4 percent were seriously delinquent. Another 7.3 percent were in the process of foreclosure, and 7.4 percent had completed the foreclosure process.