WASHINGTON — The Office of the Comptroller of the Currency reported that the vast majority of mortgages in the federal banking system remained current and performing, even as loan modification activity declined and pockets of stress persisted, according to its latest quarterly Mortgage Metrics Report.
The report, which covers loans owned or serviced by large national banks and federal savings associations, found that about 97% of mortgages were current and performing at the end of the most recent reporting period, continuing a trend of stable performance over the past year.
The OCC said the mortgages included in the report represent roughly 20% of all U.S. residential mortgage debt, totaling about 10.5 million loans and $2.7 trillion in principal balances.
The share of seriously delinquent loans—those 60 or more days past due or held by borrowers in bankruptcy—remained largely unchanged year over year, indicating limited deterioration in overall credit quality.
Decline in Modifications
At the same time, the report showed a decline in mortgage modification activity, with servicers completing fewer loan modifications compared with the prior quarter. The vast majority of those modifications continued to be “combination” actions, such as interest rate reductions paired with term extensions, aimed at improving borrower affordability.
The OCC’s quarterly report is designed to provide insight into mortgage performance and loss mitigation efforts across the federal banking system, including trends in delinquencies, foreclosures and loan workouts.
