VARbuzz: Delinquencies down… well, residential ones
Lots of good news on the mortgage-delinquency front — it looks like Americans have gotten their collective sea legs and are on more solid financial ground (to mix a couple of metaphors).
First off, Fannie and Freddie reported that the mortgages they service did better in the first quarter than they have in quite a while. Here’s a quote from the Office of the Comptroller of the Currency’s Mortgage Metrics Report (emphasis mine):
The overall quality of the portfolio of serviced mortgages improved during the quarter with the percentage of mortgages that were current and performing at 88.9 percent, the highest level in three years.
The percentages of mortgages that were 30 to 59 and 60 to 89 days delinquent also decreased to their lowest levels since the OCC began publishing the Mortgage Metrics report in first quarter of 2008 (see table 7).
This improvement can be attributed to several factors, including strengthening economic conditions during the quarter, seasonal effects, servicing transfers, and the ongoing effects of both home retention loan modification programs as well as home forfeiture actions.
The report does have some bad news: The percentage of mortgages in the process of foreclosure at the end of the Q1 was up 2.3 percent over last year. But new foreclosures were down 8.1 percent from 2011.
Meanwhile, things aren’t quite as good on the commercial front. Housing Wire is reporting that the delinquency rate on commercial mortgage-backed securities was up slightly in June — that’s the fourth straight month it’s gone up “and another all-time high.”