OCC: B. Modified Loan Performance

B. Modified Loan Performance

First Quarter 2009

Also new to the report are data on the sustainability of modifications by vintage, comparing the performance of modifications implemented quarter by quarter during 2008 and in the fourth quarter of 2008. Thus, this data show the status after 12 months of modifications implemented in the first quarter 2008—29.5 percent current; 33 percent severely delinquent; and 17 percent gone to foreclosure—and the status after 90 days of modifications implemented in the fourth quarter of 2008—48.2 percent current; 27.1 percent severely delinquent; and 5.4 percent going to foreclosure. The higher delinquencies and foreclosures noted for older vintage modifications at least partially reflect the normal increase in defaults over time. As we obtain additional performance data on more recent loan modifications we will be able to determine if they compare favorably with older vintage modifications. This is especially important given the number of changes made to loan modification programs since the beginning of 2008.

Status of Loans Modifications as of March 31, 2009 (Percentage of Modifications Made in Each Quarter)
	3/31/2008	6/30/2008	9/30/2008	12/31/2008	3/31/2009
Current and Performing	29.5%	31.6%	35.5%	48.2%	64.0%
30-59 days Delinquent	9.4%	9.7%	11.3%	14.3%	10.3%
60 or More Days Delinquent	33.0%	37.6%	37.0%	27.1%	21.7%
In Process of Foreclosure	12.6%	11.7%	9.4%	5.4%	2.4%
Completed Foreclosure	4.2%	1.8%	0.5%	0.2%	0.1%
Short Sale or Deed-in-Lieu of Foreclosure	0.1%	0.1%	0.1%	0.03%	0.01%
Paid in Full	2.5%	1.6%	1.0%	0.4%	0.1%
Other Liquidation¹⁸	8.9%	6.0%	5.7%	4.5%	1.3%
Status of Loans Modified in Each Quarter of 2008 as of March 31, 2009 (Number of Modifications Made in Each Quarter)
	3/31/2008	6/30/2008	9/30/2008	12/31/2008	3/31/2009
Total	68,001	127,940	114,142	119,220	185,156
Current and Performing	20,022	40,439	40,556	57,403	118,542
30-59 days Delinquent	6,364	12,395	12,947	17,023	19,132
60 or More Days Delinquent	22,460	48,061	42,203	32,311	40,255
In Process of Foreclosure	8,546	14,921	10,729	6,469	4,525
Completed Foreclosure	2,836	2,338	594	212	140
Short Sale or Deed-in-Lieu of Foreclosure	54	99	72	31	10
Paid in Full	1,672	2,011	1,152	467	101
Other Liquidation	6,047	7,676	5,889	5,304	2,451

¹⁸ Other liquidations include loans sold, transferred, or otherwise removed from the servicing portfolios of reporting institutions that are not included in other categories.

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B. Modified Loan Performance

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