Overall Mortgage Performance

First Quarter 2009

About 90 percent of all mortgages in the portfolio were current and performing at the end of the first quarter of 2009, about the same percentage as the previous quarter.  Despite that steady performance overall, serious delinquencies—loans 60 or more days past due and loans to delinquent bankrupt borrowers—increased by nearly 9 percent from the previous quarter to 5 percent of all mortgages in the portfolio at the end of the quarter.  This increase in seriously delinquent mortgages was offset by a decline in early stage delinquencies—loans that were 30 to 59 days past due.  However, the decline in early stage delinquencies is at least partially explained by seasonal effects and may not represent a sustainable trend, while rising serious delinquencies are a leading indicator of increased foreclosure actions in the future.  Foreclosures in process rose to 844,389 and represented 2.5 percent of all serviced loans, as a variety of moratoria on foreclosures expired during the first quarter of 2009 and the recession continued to exert pressure on borrowers.  The increase in the number of foreclosures in process represented a 21.8 percent jump from the previous quarter and 72.6 percent rise from the first quarter of 2008.

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