On July 3, the Office of Thrift Supervision (OTS) released its first Mortgage Metrics Report, which describes efforts by OTS-regulated mortgage servicers in assisting qualified borrowers to retain their homes during the quarter ended March 31, 2008.
Data in the report comes from the five largest servicers of residential mortgages among OTS-regulated thrifts and their affiliates. Combined, these five institutions serviced 11.4 million first-lien residential mortgages with an outstanding balance of approximately $2.3 trillion. According to the report, more than “91 percent of the mortgages in the servicing portfolios are held by third parties via securitization by government-sponsored enterprises and other financial institutions.”
Findings in the report include the following: (i) 71% of loans involved in loss mitigation actions during March 2008 were loan modifications, which outnumbered new payment plans by 2.5 to one; (ii) loss mitigation actions increased 26% from February to March 2008, outpacing the number of new foreclosures, which increased 8.5% during the same period; and (iii) the proportion of mortgages in the total portfolio that was current and performing remained relatively constant during each month of the first quarter at approximately 92%. The report is intended to provide a basis for assessing the effectiveness of foreclosure prevention initiatives.
The Office of the Comptroller of the Currency has undertaken a similar initiative with respect to the national banks it regulates. According to the press release, the OTS intends to coordinate future efforts to collect and report data with the OCC.