OCC Reports Mortgage Performance for Second Quarter of 2023

Summary

The OCC Mortgage Metrics Report, Second Quarter 2023 showed that 97.3 percent of mortgages included in the report 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.

The percentage of seriously delinquent mortgages - mortgages that are 60 or more days past due and all mortgages held by bankrupt borrowers whose payments are 30 or more days past due - was 1.1 percent in the second quarter of 2023, the same as the previous quarter, and a decrease compared to 1.5 percent a year ago. Servicers initiated 7,480 new foreclosures in the second quarter of 2023, a decrease from the prior quarter and from a year earlier. The new foreclosure volume in the second quarter of 2023 is lower than pre-COVID-19 pandemic foreclosure volumes.

Servicers completed 8,623 modifications during the second quarter of 2023, a 16.9 percent decrease from the previous quarter's 10,375 modifications. Of the 8,623 modifications completed during the quarter, 4,372, or 50.7 percent, reduced the loan's pre-modification monthly payment, and 7,279 or 84.4 percent, were "combination modifications"-modifications that included multiple actions affecting the affordability and sustainability of the loan, such as an interest rate reduction and a term extension.

The first-lien mortgages included in the OCC's quarterly report comprise 22 percent of all residential mortgage debt outstanding in the United States or approximately 12 million loans totaling $2.8 trillion in principal balances.

This report provides information on mortgage performance through June 30, 2023.