A new report from the Office of the Comptroller of the Currency (OCC) reveals that more than 90 percent of the mortgage loans serviced by nine of the largest national banks are in good standing. The report, titled OCC Mortgage Metrics Report: Analysis and Disclosure of National Bank Mortgage Loan Data, October 2007–March 2008, is based on an analysis of comprehensive, loan-level data from October 1, 2007, through March 31, 2008, on all first residential mortgages serviced by the nine national banks with the largest mortgage servicing portfolios.* Combined, the nine banks service 23 million first mortgage loans, or 40 percent of all mortgages outstanding in the U.S. The OCC notes that the total portfolio is not representative of the overall mortgage market, since the subprime mortgages captured in the data set make up just 25 percent of all subprime mortgages.
The report focuses on loan modifications, delinquencies, loss-mitigation activities, and foreclosures. According to the findings, 94 percent of mortgages in the total portfolio were current and performing as of March 31, 2008. There was a steady rise in foreclosures over the study period, from 0.9 percent to 1.23 percent, resulting in a total of 283,988 foreclosures in progress at the end of March. Subprime mortgages made up less than 9 percent of the total portfolio during the study period, but were tied to 43 percent of all loss-mitigation activities and 47 percent of all loan modifications.
The Mortgage Metrics Report is the first of a planned series; additional reports will be published quarterly. To read the report, visit www.occ.gov/ftp/release/2008-65b.pdf.
* The nine banks are Bank of America, Citibank, First Horizon, HSBC, JPMorgan Chase, National City, U.S. Bank, Wachovia, and Wells Fargo.
