Banking and Finance Law Daily Wrap Up, MORTGAGES—Home mortgage performance remained steady in Q3, (Dec 16, 2025)
Organizations Mentioned:Office of the Comptroller of the Currency
By Lauren Bikoff, MLS
The report provides information on mortgage performance through Sept. 30, 2025.
The majority (97.4 percent) of first-lien mortgages in the federal banking system are current and performing at the end of the third quarter of 2025, according to the Office of the Comptroller of the Currency’s (OCC) Mortgage Metrics Report, Third Quarter 2025. The report noted that this figure was unchanged from 97.4 percent at the end of the third quarter in 2024. The first-lien mortgages included in the OCC’s quarterly report comprise approximately 20 percent of all residential mortgage debt outstanding in the United States or approximately 10.5 million loans totaling $2.7 trillion in principal balances.
According to the OCC data, servicers initiated 7,903 new foreclosures in the third quarter of 2025, up from 6,693 in the third quarter of 2024. However, the percentage of seriously delinquent mortgages—mortgages that are 60 or more days past due and all mortgages held by bankrupt borrowers whose payments are 30 or more days past due—remained unchanged from the third quarter of 2024.
Servicers completed 8,190 modifications during the third quarter of 2025, a 2.7 percent decrease from the previous quarter’s 8,419 modifications. Of these 8,190 modifications, 7,755 (94.7 percent) were “combination modifications,” which are modifications that included multiple actions affecting the affordability and sustainability of the loan, such as an interest rate reduction and a term extension. Of the remaining 435 loan modifications, 412 received a single action and 23 were not assigned a modification type.
RegulatoryActivity: BankingOperations FinancialStability Loans Mortgages