Some of the biggest banks in the U.S. reported an improvement in the overall mortgage performance in Q3 according to the Office of the Comptroller of Currency's  (OCC's) Mortgage Metrics report.
The report revealed that as of September 30, 2018, the reporting banks had serviced 17.2 million first-lien mortgage loans with $3.26 trillion in unpaid principal balances indicating 32 percent of all residential mortgage debt outstanding in the U.S. This indicated that 95.4 percent mortgages were current and performing compared with 94.8 percent a year ago.
Looking at loan modifications in Q3, the report indicated that servicers completed 25,701 modifications, a decrease of 21.3 percent over the last quarter. Of these, 21,766 were combination modifications that included "multiple actions affecting affordability and sustainability of the loan, such as an interest rate reduction and a term extension."
Among the 21,766 completed combination modifications, the report said, 96.6 percent included capitalization of delinquent interest and fees, 43.4 percent included an interest rate reduction or freeze, 96 percent included a term extension, 1.2 percent a principal reduction, and 13.5 percent included principal deferral.
The report also said that of the 23,427 modifications that were completed during the first quarter of 2018, "servicers reported 3,580, or 15.3 percent, were 60 or more days past due or in the process of foreclosure at the end of the month that they became six months old."
Servicers also initiated 28,508 new foreclosures during the third quarter of 2018, according to This marked a 3.7 percent quarter-over-quarter decrease and a 16.8 percent decline from a year ago.
Home forfeiture actions during the quarter that included completed foreclosure sales, short sales, and deed-in-lieu-of-foreclosure action, decreased 30.4 percent from last year to 15,506.
The report is based on data collected on first-lien residential mortgage loans serviced by seven national banks with large mortgage servicing portfolios. They include Bank of America, Citibank, HSBC, JPMorgan Chase, PNC Bank, U.S. Bank, and Wells Fargo. The report excludes mortgage loans like junior liens, home equity lines of credit (HELOC), and reverse mortgages.
Click here  to read the full report.