Mortgage performance at national banks improved slightly in the second quarter, and seriously delinquent loans were at their lowest level in three years, the Office of the Comptroller of the Currency (OCC) said Thursday.

The percentage of mortgages that were current or performing was 88.7% at the end of the quarter, compared with 88.1% a year earlier and 88.9% in the first quarter, the agency said in its quarterly mortgage metrics report.

The OCC attributed the year-over-year improvement to strengthening economic conditions, servicing transfers and the ongoing effects of loan modification programs and foreclosures.

The percentage of mortgages that were 30 to 59 days past due increased 12.1% from the prior quarter - a seasonal decline in performance, the OCC said - but fell 7.5% from a year ago. And the percentage of seriously delinquent mortgages was 4.4%, down from 4.9% year earlier, the agency said.

The report covers 30.5 million first-lien mortgages worth $5.2 trillion in outstanding balances, about 60% of all first-lien mortgages in the United States.

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