Reports by the Office of the Comptroller of the Currency and the Office of Thrift Supervision presented mixed signals of improvement and distress

* U.S. loan modifications up 55 pct in Q1 from Q4
* Seriously delinquent mortgages up 9 pct in Q1 from Q4
* Foreclosures in process up 22 pct in Q1 from Q4

WASHINGTON, June 30 (Reuters) - The pace of home loan modifications shot up during the first quarter, but so did mortgage payment delinquencies and foreclosures, U.S. bank regulators said on Tuesday. The quarterly report on mortgage metrics showed that the quality of modifications improved, with more than half of them resulting in lower monthly principal and interest payments.

But the report released by the Office of the Comptroller of the Currency and the Office of Thrift Supervision presented mixed signals of improvement and distress as rising unemployment and other economic pressures weighed on borrowers.

"While I'm very concerned about the rise in delinquent mortgages and foreclosure actions, the shift in emphasis by servicers to more sustainable, payment-reducing modifications is a positive step that should show significant benefits in the coming months," Comptroller of the Currency John Dugan said in a statement.

As the Obama administration's Making Home Affordable loan modification plan gains traction, he said, regulators will continue to see progress in future reports. more ...