The U.S. Department of the Treasury and the U.S. Department of Housing & Urban Development (HUD) have released February data for the Administration's Home Affordable Modification Program (HAMP). As of the end of the month, more than one million borrowers were receiving a median savings of $500 each month, a 36 percent median monthly payment decrease. Permanent modifications have been granted to 170,000 homeowners and an additional 91,800 permanent modifications have been approved by servicers and are pending only borrower acceptance.
Highlights of the report include:
►More than 170,000 permanent modifications have been granted to homeowners, who are guaranteed lower payments for five years.
►An additional 91,800 permanent modifications have been approved by servicers and are pending borrower acceptance.
►More than 1.3 million homeowners have received offers for trial modifications, representing 34-45 percent toward the goal of three to four million offers extended through 2012.
►More than 72,000 new trial modifications started in February; borrower savings begin with the first trial payment. Nearly 1.1 million trial modifications have begun under the program.
►Of the one million borrowers in active modifications, more than 168,000 borrowers are in active permanent modifications.
►These homeowners’ lower monthly mortgage payments represent a cumulative savings of over $2.7 billion.
►Of modifications that have converted to permanent, 0.9 percent have been canceled. Of all modifications started, 8.2 percent have been canceled.
►Borrowers in permanent modifications are saving a median of 36 percent of their before-modification payment; median savings is more than $500 each month.
►Qualified homeowners could reduce housing-related expenses from almost half of their gross income to less than one-third of their income.
►Upon completing one year of on-time payments per program guidelines, borrowers are eligible to earn up to $1,000 to be applied to their outstanding mortgage balance.
A full copy of the February HAMP report can be found by clicking here.