Report: Prime Mortgage Delinquencies Have Doubled

MortgagesIn a finding that even surprised banking regulators, serious delinquencies among prime mortgages rose to 3.6 percent by third quarter’s end, up almost 20 percent from the previous quarter and more than double a year ago, according to a report released today.
Overall, serious delinquencies – defined as mortgages 60 days or more past due – rose to 6.2 percent. Moreover, foreclosures in process surpassed 1 million mortgages, or about 3.2 percent of the loan portfolios surveyed by the Office of Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS).
The data analyzed represents 65 percent of all first-lien residential mortgages outstanding in the country.
The Mortgage Metrics Report for the Third Quarter 2009 compiled by the two banking regulators found that the percentage of current and performing mortgages dropped for the sixth consecutive quarter to 87 percent.
“The seriously delinquent rate for prime mortgages, the largest risk category of mortgages in the servicing portfolio, has more than doubled over the last year as financial difficulties have increasingly affected this most creditworthy category of borrowers,” the report states.
Also troubling in the report’s findings was the “re-default rate” among borrowers enrolled in mortgage reduction trails under the government’s foreclosure-rescue plan, Home Affordable Modification Program, or HAMP.
“Despite growth in the number of modifications, modified loans continue to re-default at high rates,” the report said. “Measuring re-default as 60 or more days delinquent or in foreclosure, more than half of all modified loans re-defaulted within six months of modification.”
The OCC and OTS report is derived from data on first-lien residential mortgages serviced by national banks and thrifts. The report focuses on credit performance, loan modifications, payment plans, foreclosures, short sales, and deed-in-lieu-of-foreclosure actions.
The OCC and OTS collect the information from the nine national banks and three thrifts that have the largest mortgage-servicing portfolios, among all national banks and thrifts. These 12 depository institutions are owned by nine holding companies.

3 thoughts on “Report: Prime Mortgage Delinquencies Have Doubled

  • December 22, 2009 at 11:14 am

    First and foremost HUD will not provide the home owner any legal representation. If the home owner is about to lose their home in a sheriff sale our legal team will file the necessary paper work to stop the sale so we may proceed in saving the persons home. They will not perform a forensic audit on their mortgage to find out if there are any violations on the mortgage tila,respa,etc. Basically they council the person on how to file for a modification then your on your own. The home owner would have to follow up and negotiate the modification on their own with the lender.HUD can not guarantee an out come. Here at the Home Owner Protection group once the home owner is accepted in our program we will guarantee a principal reduction
    of at least 10% or all fees will be returned that in it self will be worth the fee, especially if the home owner is underwater( owes more than the home is worth). And the best part it will not cost the home owner anything to find out if they, qualify for our program.
    And that is just the mortgage part of our program.
    We also include free debt settlement free financial counseling free credit restoration, free career optimization, free Financial coaching and retirement planning. You know how these services alone are worth in the tens of thousands of dollars. That’s why we call it THE FULL CIRCLE PACKAGE . We do not just do a total reset of their mortgage but get them financially stable so they may not be in the same, situation down the road.

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