The Office of the Comptroller of the Currency (OCC) has issued its “OCC Mortgage Metrics Report, Fourth Quarter 2024,” tracking the performance of first-lien mortgages in the federal banking system during Q4 of 2024.
The report found that 97.3% of mortgages included were current and performing at the end of Q4 2024, a slight increase from 97.2% reported year-over-year.
The OCC charters, regulates, and supervises all national banks. It also supervises the federal branches and agencies of foreign banks.
The percentage of seriously delinquent mortgages–mortgages that are 60 or more days past due and all mortgages held by bankrupt borrowers whose payments are 30 or more days past due–decreased from Q4 of 2023. The nation’s mortgage servicers initiated 6,647 new foreclosures in Q4 of 2024, a decrease from the previous quarter, and a decrease from the totals reported in Q4 of 2023.
Servicers completed 7,332 loan modifications during Q4 of 2024, a 1.6% decrease from Q3’s 7,450 modifications. Of these 7,332 modifications, 6,872, or 93.7%, were “combination modifications”—modifications that included multiple actions affecting the affordability and sustainability of the loan, such as an interest rate reduction and a term extension.
The first-lien mortgages included in the OCC’s quarterly report comprise 20.2% of all residential mortgage debt outstanding in the U.S., or approximately 11.1 million loans totaling $2.7 trillion in principal balances.
On the commercial side, the Mortgage Bankers Association’s (MBA) Commercial Delinquency Report for Q4 2024 found that commercial mortgage delinquencies rose in the fourth quarter of 2024.
MBA’s quarterly analysis looks at commercial delinquency rates for the top five capital sources: Commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, and Fannie Mae and Freddie Mac. Together, these investors hold more than 80% of commercial mortgage debt outstanding. MBA’s analysis incorporates the measures used by each capital source to track the performance of their loans.
“Commercial mortgage delinquency rates increased in the fourth quarter of 2024, with the exception of life company loans, which showed a slight decrease,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Even with certain market challenges such as low occupancy rates and the uncertain impact of return-to-office mandates in the office market, and oversupply in the multifamily property market, delinquency rates remain relatively low from a historical perspective.”
Based on the unpaid principal balance (UPB) of loans, commercial delinquency rates for each group at the end of Q4 of 2024 were as follows:
- Banks and thrifts (90 or more days delinquent or in non-accrual):26%, an increase of 0.02 percentage points from Q3 of 2024.
- Life company portfolios (60 or more days delinquent):43%, a decrease of 0.03 percentage points from Q3 of 2024.
- Fannie Mae (60 or more days delinquent):57%, an increase of 0.01 percentage points from Q3 of 2024.
- Freddie Mac (60 or more days delinquent):40%, an increase of 0.01 percentage points from Q3 of 2024.
- CMBS (30 or more days delinquent or in REO):78%, an increase of 0.63 percentage points from Q3 of 2024
“MBA estimates that almost a trillion dollars’ worth of loans are maturing in 2025, and these maturities, coupled with more challenging economic conditions and rangebound interest rates, may result in some further increases in delinquencies if borrowers cannot successfully refinance these loans,” noted Fratantoni.
Click here for more on the “OCC Mortgage Metrics Report, Fourth Quarter 2024.”
