HOPE NOW report: Lending industry modified 134,000 mortgages in FebruaryMortgagePress.comloan modifications, workouts, HOPE NOW, Faith Schwartz, Making Home Affordable
HOPE NOW, the private sector alliance of mortgage servicers,
non-profit counselors, and investors that has been working
aggressively to prevent foreclosures and keep homeowners in their
homes, today announced that its members and the larger mortgage
lending industry modified 134,000 mortgages in February, a nine
percent increase over the number of mortgages that were modified in
January.
The combination of 134,000 mortgage modifications and 110,000
repayment plans means that, in February 2009, HOPE NOW members and
the larger mortgage lending industry helped 244,000 at-risk
homeowners (homeowners in danger of losing their homes) avoid
foreclosure through one of these two mortgage solutions. This is
the first time since HOPE NOW began to compile data in July 2007
that the number of foreclosure preventions has exceeded 200,000 for
six consecutive months. This is a more than 30 percent increase
over the last six months.
According to Faith Schwartz, HOPE NOW's executive director, the
mortgage lending industry is working hard to provide multiple
options for borrowers to avoid foreclosure. "We expect the trend to
continue as many companies expand their offerings to include the
administration's Making Home Affordable refinance and modification
programs," she said. "The mortgage lending industry is responding
to the needs of its customers and offering solutions that are
appropriate to the current market and economic conditions," she
added.
The HOPE NOW February data does not yet reflect the impact of
the Obama administration's recently announced Homeowner
Affordability and Stability Plan which has not yet been
implemented.
The HOPE NOW February data shows:
• Modifications were more than half of all solutions
provided to homeowners
• The number of foreclosures started in February increased
from 217,000 in January to 243,000
• Completed foreclosure sales increased from 68,000 in
January to 87,000 in February
"Currently 5.5 percent of the total mortgage market is 60 days
or more delinquent," Schwartz said. "Because of this, HOPE NOW
members are working hard to help the administration implement its
recently-announced foreclosure prevention initiative as well as
working on additional ways we can be more efficient in helping
at-risk homeowners."
HOPE NOW collects data each month from 26 institutions. That
means that the information is comprehensive and provides an
excellent picture of what is happening in the mortgage lending
industry as a whole.
A summary table of the results is attached and can be found by
clicking here.
For more information, visit www.hopenow.com.
