Mortgage Quality Improve Despite Rise In Defaults
WASHINGTON-Mortgage portfolios of the country's largest lenders showed more signs of improvement during the second quarter despite an uptick in early delinquencies, according to a report issued by the Office of the Comptroller of the Currency last week.
The agency's quarterly mortgage metrics report showed that 90.6% of the 26.5 million loans reviewed were performing well in the second quarter, up from 90.2% in the previous quarter and 88.7% a year earlier. The number of foreclosures and "seriously delinquent" loans also dropped to their lowest levels since the crisis hit in 2008. The OCC attributed such improvements to a strengthening economy, servicing transfers, home retention efforts and home forfeiture actions.
"The portfolio performance reported in the mortgage metrics are getting stronger," said Kathie Gouldie, the OCC's lead retail credit expert. "These are really positive trends and we hope that they will continue."
Banks Pressured to Settle In Online Lending Probe
WASHINGTON-The Justice Department is pressuring banks under investigation for their ties to online lenders to reach a settlement soon, according to industry sources familiar with the matter.
The investigation concerns electronic payments that banks process for online lenders suspected of fraudulently accessing customers' bank accounts.
Roughly 50 banks and third-party payment processing firms have received subpoenas from the Justice Department, according to sources. The DOJ is to reach a settlement in the coming weeks with one of the banks and then to use the terms of that agreement as a template in talks with other banks.
A Justice Department official declined to comment on settlement talks.
