Loan modifications and payment restructurings by the nation's residential servicers rose 75% in the second quarter to 439,574 units, with a noticeable increase in principal reductions, according to new figures released by the Office of the Comptroller of the Currency (OCC).
The loan mods were undertaken by the nation's largest servicers including Bank of America, Wells Fargo and others.
The percentage increase reflects gains from the second quarter of 2008. Compared to the first quarter, loan restructurings rose 21.7%.
OCC said 10% of modifications involved reductions in the principal amount owed by consumes compared to 3.1% in the first quarter. OCC, however, does not know the dollar volume on principal reductions.
"We don't collect that information from servicers," said an agency spokesman. The government said the number of "seriously delinquent" mortgages continued to rise but there was a lull in foreclosures initiated because lenders moved to implement the Obama administration's Making Home Affordable (MHA) modification program. Servicers reported that they engaged in 114,538 MHA trial modifications in the second quarter.
According to the Quarterly Data Report, there are 66.5 million residential loans outstanding in the United States.
