Mortgages in Better Shape in 2012

First-lien home loans performed well in the third quarter, according to a government report, though that performance dipped slightly from the previous three-month period.

The Office of the Comptroller of the Currencyโ€™s Mortgage Metrics Report for the period between July and September indicates a rise on an annual basis in terms of quality of performing mortgages nationwide. Data from the OCC shows 88.6 percent of all first-lien loans were current and performing by the end of the period.

โ€œStrengthening economic conditions, servicing transfers, and the ongoing effects of home retention efforts and home forfeiture actions contributed to the improvement in seriously delinquent mortgages compared with last year,โ€ the agency stated in its report.

While this figure improved from its 2011 level, the percentage dropped from the second quarter. During that period, the rate was 88.7 percent, marking a modest dip.

Another minor negative factor noted in the report was a jump in the number of home loans between 30 and 59 days delinquent. According to the findings, 3.1 percent of all first-lien mortgages were this late during the third quarter โ€” a hike of 3.6 percent from the year before and a 10.4 percent boost from the second quarter, the OCC notes.

Other data from the report shows mortgage modifications were able to help a significant number of borrowers nationwide. Monthly and interest payments decreased nearly 24 percent during the third quarter. This amounts to roughly $345 per borrower.

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Programs like the Home Affordable Modification Program continue to aid delinquent borrowers, allowing them to alter their home loansโ€™ terms and get current on payments.

The OCC isnโ€™t the only entity to report improving home loan conditions among mortgage borrowers across the country late in 2012. According to Lender Processing Servicesโ€™ โ€œFirst Lookโ€ Mortgage Report for November, the U.S. delinquency rate dipped more than 9 percent from a year earlier.

Additionally, LPSโ€™ report indicates the countryโ€™s foreclosure inventory continues to fall. The amount of distressed properties on the market during the second month of the fourth quarter slipped more than 16 percent from November 2011.

Image: Samantha Marx, via Flickr

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