Skip to main content

One million-plus permanent loan mods completed to date in U.S.
Sep 01, 2010

HOPE NOW, the private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors estimates the industry has completed 1.13 million permanent loan modifications for at-risk homeowners so far in 2010. For the month of July, the data shows the industry completed more than 120,000 proprietary loan modifications for homeowners, which closely matched the number from the previous month. As reported by U.S. Treasury Department, mortgage servicers also completed 36,695 Home Affordable Modification Program (HAMP) modifications in July. If a homeowner does not qualify for HAMP, mortgage servicers determine eligibility for a proprietary loan modification that may help a homeowner stay in their home. In fact, 86 percent of proprietary modifications completed in July reduced the monthly payment for homeowners in order to make them more sustainable. HOPE NOW also reports that since January of this year, mortgage delinquencies of 60 days or more past due have dropped 20 percent as of July 2010. Since HOPE NOW initiated survey data reporting (July 2007), more than 3.5 million homeowners have saved their homes via permanent loan modifications. This total reflects the combination of proprietary loan modifications plus those completed under HAMP (as reported by the U.S. Treasury). Combined with other mortgage options, such as repayment plans and forbearance, the mortgage industry has assisted almost 10.4 million homeowners since HOPE NOW was formed in 2007. Here are some highlights of the July 2010 data: ►Proprietary loan modifications completed continued at a consistent pace—120,811 in June compared to 120,351 in July. ►Principal and interest reduction modifications completed increased from 96,440 in June to 103,029 in July (an increase of seven percent) and represented 86 percent of all proprietary loan modifications. ►Formal repayment plans initiated remained flat from 88,449 in June to 89,165 in July (zero percent). ►Other retention plans completed decreased slightly from 81,394 in June to 79,762 in July (down two percent). ►60-plus days delinquencies decreased from 3,487,783 in June to 3,298,236 in July (down five percent). ►Foreclosure starts increased from 186,395 in June to 226,664 in July (an increase of 22 percent). ►Completed foreclosure sales increased from 87,842 in June to 97,951 in July (a 12 percent increase). “The industry continues to make progress in assisting large numbers of borrowers who are at risk of foreclosure," said Faith Schwartz, senior advisor for HOPE NOW. "Our data this year shows some positive trends, including a high percentage of proprietary mods that include reductions of monthly principal and interest payments. This translates into more affordable loan modifications for homeowners. Additionally, we are pleased to see that the number of homeowners who are 60 or more days delinquent on their mortgages has declined 20 percent since January 2010. As noted, we did see an increase in foreclosure starts and sales, despite the unprecedented efforts of the industry, along with its government and non-profit partners to offer many alternatives to foreclosure. We believe this is a function of borrowers moving through the pipeline of all eligible program offerings (government and private industry) to exhaust all alternatives. The increase in foreclosures is also a reflection of the continued challenges facing the economy, particularly the level of unemployment nationwide. We remain hopeful that as jobs start to come back the housing market will stabilize.” For more information, visit
Sep 01, 2010
Creativity Found In The Oddest Place

Flagstar’s MortgageTech Accelerator program has its roots in Major League Baseball

Industry News
Nov 21, 2022
UWM Expands Temporary Rate Buydown Offerings

In a rising rate environment, this temporary rate buydown will be an attractive option for borrowers.

Industry News
Nov 16, 2022
Down Payment Assistance Facilitator Arrive Home Launched

Social enterprise

Industry News
Nov 15, 2022
FundMore, VeriFast Team To Expand Digital Verification

Announced a partnership that seeks to secure and verify digital mortgage transactions.

Nov 14, 2022
Redfin Posts 3Q Loss, Blames iBuying Business

CEO says company will sell RedfinNow inventory of homes by Q2 2023.

Analysis and Data
Nov 09, 2022
Cenlar FSB Appoints Its 1st VP Of Cybersecurity

Brian Browne brings 25 years of experience in information security.

Nov 09, 2022