Loan performance for mortgages modified more than five years ago has been relatively stable even as the loans face higher scheduled interest rates. Analysts at Bank of America Merrill Lynch said payment shock has been limited and servicers appear to be postponing increases for some borrowers. Loans in the Home Affordable Modification Program have a fixed rate as low as 2.00 percent for the first five years, then the interest rate typically increases in steps of 1.00 percent per year until reaching the average market rate that was in effect at the time the mortgage was modified. Many proprietary mortgages, which outnumber HAMP, have similar features. Non-agency mortgages with a total unpaid principal balance of about $33.0 billion experienced...