OCC Reports Improvement in Mortgage Performance

Summary

The OCC Mortgage Metrics Report, Fourth Quarter 2021 showed that 96.4 percent of mortgages included in the report were current and performing at the end of the quarter, compared to 93.3 percent a year earlier.

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 2.3 percent in the fourth quarter of 2021, compared to 3.1 percent in the prior quarter and 5.2 percent a year ago.

Servicers initiated 1,294 new foreclosures in the fourth quarter of 2021, a 39.9 percent increase from the previous quarter and a 64.0 percent increase from a year ago. Events associated with the COVID-19 pandemic, including foreclosure moratoriums, have significantly affected these metrics.

Servicers completed 47,488 modifications in the fourth quarter of 2021, an increase of 40.8 percent from the previous quarter. Of the 47,488 mortgage modifications, 70.5 percent reduced borrowers' monthly payments, and 46,475, or 97.9 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 12.3 million loans totaling $2.62 trillion in principal balances. This report provides information on mortgage performance through December 31, 2021.