Mortgage performance dropped slightly on a quarterly basis but was better than a year ago in the second quarter, according to the Office of the Comptroller of the Currency.
The OCC Mortgage Metrics Report for the Second Quarter of 2011 showed the percentage of mortgages that were current was 88.7 percent, a slight drop from the previous quarter's percentage of 88.9 percent. A year ago, 88.1 percent of mortgages were current.
The percentage of mortgages that were past due 30 to 59 days increased 12.1 percent from the previous quarter but was down 7.5 percent from the second quarter in 2011. Seriously delinquent mortgage fell to their lowest level in three years.
The report also found that Home Affordable Modification Program loan modifications reduced mortgage payments by an average of $576.
HAMP has been able to help many American mortgage holders reduce their payments in order to avoid potential foreclosure. Beginning on June 1, the federal government made changes that expanded the population of homeowners eligible for HAMP mods.
Homeowners now able to receive a mod include those who previously didn't qualify because their debt-to-income ratio was 31 percent or lower or they has previously received a HAMP mod trial plan and defaulted on those payments.