OCC and OTS Mortgage Metrics Report
Third Quarter 2008
30+ Re-Default Rates by Investor
Measured in terms of delinquencies exceeding 30 days, loans held by private investors that were modified in the first quarter had the highest re-default rate at 42.28 percent after three months and 60.76 percent after six months. Loans held on the books of servicing banks and thrifts had the lowest re-default rates at 35.06 percent after three month, and 50.86 percent after six months, compared to loans serviced on behalf of third parties. The lower re-default rate for loans held by servicers may suggest that there is greater flexibility to modify loans in more sustainable ways when loans are held on a servicers’ own books than when loans have been sold to third parties.
| First Quarter 2008 Loans by Investor |
| |
Three Months After Modification
(30+ Days Delinquent)
|
Six Months After Modification
(30+ Days Delinquent)
|
| On-book portfolio (loans held by servicers) |
35.06% |
50.86% |
| FHLMC (Freddie Mac) |
39.09% |
57.87% |
| FNMA (Fannie Mae) |
38.34% |
57.11% |
| Private Investors |
42.28% |
60.76% |
|
