OCC: Modified Loans Delinquent after Six Months, by Changes to Monthly Payments: Re-Default Rates Using Varying Definitions

Modified Loans Delinquent after Six Months, by Changes to Monthly Payments: Re-Default Rates Using Varying Definitions

First Quarter 2009

The amount of payment reduction varied with significantly lower re-default rates six months after modification using varying measures of re-default—30 or more days, 60 or more days, and 90 or more days delinquent or in the process of foreclosure. Re-default rates measured as 60 or 90 or more days past due after six months were less than 30 percent when monthly payments were reduced by 10 percent or more, but were considerably higher when payments were left unchanged or increased.

Varying Measures of Delinquency at Six Months after Modification (Includes Loans Modified during 2008)
	Decreased by 20% or More	Decreased by 10% to Less than 20%	Decreased by Less than 10%	Unchanged	Increased	Overall
30 or More Days Delinquent	38.9%	43.7%	52.7%	66.6%	65.5%	57.6%
60 or more Days Delinquent	24.3%	28.8%	36.1%	54.4%	50.0%	43.1%
90 or More Days Delinquent	15.6%	19.0%	24.2%	45.7%	37.9%	32.7%

Varying Measures of Delinquency at Six Months after Modification

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Appendixes

Modified Loans Delinquent after Six Months, by Changes to Monthly Payments: Re-Default Rates Using Varying Definitions

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