Today, the OCC and the OTS announced their intent to expand the scope of the mortgage performance data gathered from national banks and thrifts to include additional data on the affordability and sustainability of loan modifications. The data, scheduled for release next month, will be published in the agencies’ third Mortgage Metrics Report (“Report”) and will review categories of loan modifications that:

  • Increased borrowers’ monthly principal and interest payments;
  • Brought no change to payments;
  • Reduced payments by 10 percent or less;
  • Reduced payments by more than 10 percent.

Specifically, the Report will highlight the percentage of modifications from the first and second quarters of 2008 in each of the aforementioned four categories that are more than 60 days past due six months post-modification. This data will assist in measuring the four categories and assessing the sustainability of loan modifications

Emphasizing the Report, Comptroller of the Currency, John Dugan stated, “[t]his is important information on banks’ efforts to modify loans and will help inform lenders and policymakers as to what type of modifications work, with a particular focus on the effect of significant changes in monthly payments.” He continued by stating, “[w]e continue to actively urge national banks to implement effective loss mitigation actions, including affordable and sustainable loan modifications, to prevent avoidable foreclosures and to mitigate their losses. By bringing the same sort of standardized definitions and rigorous analysis to loan modification performance data that we have provided in our previous reports on mortgage metrics, lenders and policymakers can use this information to make loan modification programs more effective.”

Echoing Dugan’s statements, OTS Director John Reich stated, “[w]e have promised to continually improve the data collection-and-reporting program to ensure that the results are meaningful and useful in the ongoing effort to address the nation’s foreclosure crisis.” The number of data elements requested by mortgage servicers has increased by approximately 50 percent since June. The data collected by the agencies accumulates up to 2.38 billion pieces of data per month from the nation’s largest national banks and thrifts. As more information is gathered, the agencies anticipate continual expansion of the quarterly report to account for the information.