Prime Foreclosures on the Rise

Despite efforts to assist distressed homeowners, the number of foreclosure actions completed by mortgage servicers has steadily risen over the past four quarters, according to a new report from the Comptroller of the Currency and the Office of Thrift Supervision. "Completed foreclosures increased across all risk categories, with the highest percentage increase among prime mortgages," the OCC/OTS Mortgage Metrics report says. The joint report says completed foreclosures in the first quarter totaled 152,650, up 19% from the prior quarter and 68% since the first quarter of 2009. Roughly 76,000 prime borrowers lost their homes in 1Q as the servicer or investor took title to the property. Meanwhile, servicers initiated 370,500 new foreclosure actions in 1Q, up 19% from the fourth quarter, and at levels experienced during the first three quarters of last year. More than 174,000 prime borrowers received their first foreclosure notice in 1Q, according to government figures collected from 11 of the nation's largest bank and thrift servicers. These institutions service almost 34 million first liens with $6 trillion in outstanding balances. The servicers "indicated that new foreclosure actions and completed foreclosures are likely to continue increasing as alternatives for seriously delinquent borrowers are exhausted," the regulators said.