At the end of the third quarter, seriously delinquent mortgages at seven national banks were less than half compared with one year prior. However, these institutions were handling nearly 1,900 fewer loans, an Office of the Comptroller of the Currency report found.

These banks had 385,000 mortgages for which the borrower was 60 days or more late on their payment, plus another 200,00 in foreclosure. This compared with 482,000 and 21,000 respectively in the second quarter and 841,000 and 27,000 for the third quarter of 2020.

This equates to 3.1% of the studied mortgage servicing rights portfolios being seriously delinquent as of Sept. 30, versus 3.8% at the end of second quarter and 5.8% one year prior. Since the second quarter of 2020, the foreclosure in progress share has remained steady at 0.2%.

Completed foreclosures, short sales and deed-in-lieu transactions remain significantly below prepandemic levels although they are higher than they were for the last three quarters of 2020.

The seven banks undertook 11,138 home forfeiture actions in the third quarter of 2019. Because of foreclosure moratoriums, that sunk to 1,282 in the third quarter of 2020.

For the third quarter of 2021, this rebounded to 1,829 units.

The share of performing loans grew to 95.6%, up from 95% three months ago and 92.5% last year. But as these banks’ portfolios shrink, the number of current loans being serviced also declined, to 11,970 from 12,135 on June 30 and 13,316 on Sept. 30, 2020.

The reporting banks serviced approximately 12.516 million units with $2.592 trillion in unpaid principal balances, or 23% of all residential mortgage debt outstanding.

In the second quarter, these institutions serviced $2.597 trillion or 12,775 units, while for the third quarter of 2020, it was $2.866 trillion or 14,393 loans.

The seven banks in the study are: Bank of America, Citibank, HSBC, JPMorgan Chase, PNC, U.S. Bank and Wells Fargo.





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