Treliant Takeaway…OCC Reports Mortgage Performance for Second Quarter of 2023

OCC Reports Mortgage Performance for Second Quarter of 2023

• Source: occ.gov

Takeaway:

With the complexity of investor, insurer, and guarantor waterfalls in the loss mitigation space, mistakes are sometimes made. Ensure that you are providing the best option to borrowers for modifications, and thereby mitigating recidivism, by assessing your processes and performing testing. Treliant can help.

Our mortgage professionals have decades of experience in mortgage servicing. From loan onboarding to payoffs and claims, we can assess processes for efficiency and efficacy, provide staffing for flex volumes, especially in default, including loss mitigation, and conduct transaction testing to identify any control gaps.

Highlights:

The Office of the Comptroller of the Currency (OCC) published its second quarter mortgage metrics report. The report showed that 97.3 percent of mortgages included in the report (22 percent of all residential mortgage debt outstanding in the U.S.) were current and performing at the end of the quarter, compared with 97.6 percent in the first quarter 2023. Performance improved compared to second quarter 2022 when 97.0 percent of mortgages were current and performing. Delinquencies remain well below Fitch’s forecast of between 4.0 percent and 4.5 percent by 2023 year-end.

According to the report, most major delinquency and foreclosure indicators decreased from 2022 and continue a downward trend in 2023. One interesting statistic in the OCC’s report shows that loans modified in the 4^th quarter of 2022 were 60 or more days delinquent at a rate of 13.3 percent as the modification became six months old. It appears recidivism continues to remain a concern of lenders.