OCC Mortgage Metrics Report

Appendix A – Loan Modifications

Overview

Loan modifications are defined as mortgages for which terms of the loan were contractually changed.

Loan modifications were predominantly offered on subprime mortgages. Although subprime mortgages constituted less than 9 percent of the total portfolio, modifications of subprime mortgages comprised nearly 50 percent of all modified loans.

Conversely, prime mortgages, which constituted over 62 percent of the total portfolio, comprised only 14 percent of all modified mortgages.