Alert July 15, 2008

OTS Issues First Mortgage Metrics Report

The OTS released its first Mortgage Metrics Report covering the first quarter of 2008. The report includes performance data on first-lien residential mortgage loans, such as delinquency, loss mitigation, and foreclosure data, for the five thrift-affiliated servicers with the largest mortgage loan servicing portfolios. The key findings of the report include:

  • The proportion of loans in the total portfolio that were current and performing remained relatively constant during each month of the first quarter at approximately 92%.
  • Seriously delinquent mortgages, defined as all delinquencies 60 days or more past due or borrowers in bankruptcy who are 30 days or more delinquent, also remained relatively constant during the quarter, declining slightly from 3.65% to 3.61% of all serviced loans.
  • Foreclosures in process rose from January to March, with the total number outstanding increasing from 1.49% to 1.73% of all loans in the portfolio. New foreclosures during the month, as a percentage of seriously delinquent loans, increased from 8.69% in January to 11.21% in March.
  • The majority of seriously delinquent loans was concentrated in the highest risk segment – subprime loans. Though these loans constituted 9% of the total serviced portfolio, they sustained twice the rate of serious delinquencies as Alt-A loans and almost eight times the rate for prime loans.
  • 71% of loans involved in loss mitigation actions initiated during March were loan modifications, which outnumbered new payment plans by 2.5 to 1.
  • While subprime loans constituted 9% of the total loans serviced, subprime loss mitigation actions constituted 41% of all loss mitigation actions at the end of March.
  • Loss mitigation actions increased 26% from February to March, outpacing the number of new foreclosures, which increased 8.5% during the same period.
Click here for the report.