New Payment Plans Relative to Seriously Delinquent Mortgages

January — June 2008

New payment plans as a percentage of seriously delinquent loans trended lower during the second quarter, reflecting both an increase in seriously delinquent mortgages and the shift toward loan modifications as a more prevalent loss mitigation action. The percentage peaked at 5.01 percent for the overall portfolio in March and then declined over the following three months to 4.78 percent at the end of June.

New payment plans as a percentage of seriously delinquent loans increased slightly for subprime loans during the second quarter but declined for all other categories.

In June, the percentage was highest for subprime loans at 5.60 percent, and lowest for prime loans at 3.23.

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