OTS, OCC Say Loss Mitigation on Rise

American Banker (09/15/08) P. 16; Flitter, Emily
The Mortgage Metrics Report from the Office of Thrift Supervision and the Office of the Comptroller of the Currency indicates a jump in loss mitigation by the nation's biggest mortgage servicers during the second quarter. Some 87 percent of borrowers were in loss mitigation during the period, up from 76 percent during the first three months of 2008. The report also shows a more than 80-percent surge in modifications during the first six months of the year but only an 8-percent jump in payment plans. According to OTS director John Reich, "The trend definitely is moving in the right direction to minimize the number of avoidable foreclosures and keep more Americans in their homes."