Office of the Comptroller of the Currency (OCC)
Office of Thrift Supervision (OTS)
Performance on home mortgages serviced by the largest national banks and federally regulated thrifts declined for the seventh consecutive quarter in the fourth quarter of 2009, though home foreclosures slowed and new home retention actions continued strong, according to a report released today by the Office of the Comptroller of the Currency and the Office of Thrift Supervision.
The OCC and OTS Mortgage Metrics Report for the Fourth Quarter 2009 showed the overall percentage of current and performing mortgages fell to 86.4 percent at the end of 2009, driven by an increase in mortgages that were 90 or more days past due. Prime mortgages, which make up two-thirds of the mortgages in the portfolio, continued to have the greatest increases in delinquency. The decline was attributable to a 21.1 percent jump in mortgages 90 or more days past due, to 4.7 percent of all mortgages in the portfolio at the end of 2009.
The increase in seriously delinquent mortgages was most pronounced among prime borrowers, with an increase of 16.5 percent in seriously delinquent mortgages during the fourth quarter.
Recent vintages of modifications that emphasized sustainability through lower monthly payments performed better at three and six months after modification than older vintages. However, re-default rates remained high overall, with more than half of all modifications falling 60 or more days past due by nine months after modification.
Newly initiated foreclosures fell by more than 15 percent in the fourth quarter and foreclosures in process were stable, as mortgages remained delinquent for longer periods before entering the foreclosure process and the servicers evaluated more borrowers for loss mitigation and foreclosure prevention programs.
However, servicers report that they expect new foreclosure actions to increase in upcoming quarters as alternatives to prevent foreclosure are exhausted and a larger number of seriously delinquent mortgages slip into foreclosure.
Link to press release
March 9, 2010
Christina Romer: Consumer spending has been slower to recover, although it has shown some signs of modest improvement in the first few weeks of 2010. It took additional measures such as the "cash for clunkers" auto sales incentives and the $8,000 credit for home buyers to spur demand.
You go girl! Let's make sure we spur home buying while existing mortgage delinquencies are on the rise.
March 25, 2010
Ben Bernanke: Record-low interest rates are still needed to rev up the economic recovery, Federal Reserve Chairman Ben Bernanke told Congress on Thursday.
Dear Ben, record low interest rates are not dealing with the core problems facing this country! My folks paid a greater interest rate in the early 1960's. Your interest rate suppression is doing wonders for your banking buddies however our parents' fixed income accounts do not keep up with inflation (that we do not have).
Mr. Bernanke, might I suggest taking a peek at your health insurance renewal premium, college tuition, gasoline and the never increasing taxes and fees tagged on to everything from one's phone bill to natural gas. Then, tell us there is no inflation! When was the last time you did the grocery shopping or bought disposal diapers?
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