OCC: Half Of US Borrowers Re-Defaulting On Mtges After Help
SHOCKER!!! The CRA loans don’t perform so well?!??!
Nearly six out of 10 borrowers who have received help on their mortgage loans are more than 30 days past due on paying their new loans within eight months, a top U.S. banking regulator said Monday.
Comptroller of the Currency John Dugan, previewing a report on loan modification efforts in the third quarter, called the results “somewhat surprising and not in a good way.”
“Put simply, it shows that over half of mortgage modifications seemed not be working after six months,” Dugan said at a housing conference for policymakers in Washington.
The agency found that for loans modified in the first three months of 2008, 36% of borrowers were at least 30 days past due within three months of the loan changes. The figure jumped to 53% after six months, and 58% after eight months.
Mortgage loans modified during the second quarter showed a similar experience. The re-default rate after three months was 39% and 51% after half a year.
“The question is, why is the number of re-defaults so high?” Dugan asked…