The proportion of modified loans delinquent by 30 days or more was 55% after six months, and modified loans that were 30 or more days delinquent after three months stood at 37%.
"One very troubling point is that, whether measured using 30-day or 60-day delinquencies, re-default rates increased each month and showed no signs of leveling off after six months and even eight months," said Comptroller of the Currency John Dugan.
During the third quarter of 2008, delinquency increased in all loan categories -- prime, Alt-A and subprime -- with the percentage of mortgages that were current and performing falling to 91.47% at the end of the September, down from 93.33% at the end of the first quarter, the report compiled by the Comptroller of the Currency and the Office of Thrift Supervision said. "Delinquencies continue to rise, foreclosures and other actions leading to home forfeiture also continued to rise, and loan modifications were associated with high levels of re-default," the regulators concluded.
The report focused on 35 million first-lien mortgages, worth more than $6.1 trillion and constituting more than 60% percent of all outstanding mortgages in the United States, held or serviced by national banks and thrifts.
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