HOPE NOW August Data Shows Approximately 149,000 Loan Mods Completed
HOPE NOW, the private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors released its August 2010 survey data today, which estimates the industry completed almost 150,000 permanent loan modifications for the month. The reported data for August shows that mortgage servicers completed approximately 116,000 proprietary loan modifications for homeowners and 33,000 Home Affordable Modification Program (HAMP) modifications (as reported by the U.S. Treasury Department), for an estimated total of 149,000. Of particular note in the August data, is that 91 percent of all proprietary loan modifications for the month (105,000) included a reduction of the monthly principal and interest payments for homeowners. This statistic indicates that the vast majority of loan modifications are being structured to make mortgages more sustainable for homeowners. “HOPE NOW is encouraged by the ongoing efforts of its servicing members to seek and provide workout solutions for distressed homeowners. Homeowners and loan servicers are using all available avenues for preventing foreclosures, including utilizing a combination of forbearance, HAMP modifications, proprietary modifications and even short sales and deed in lieu efforts," said Faith Schwartz, senior advisor for HOPE NOW. "Despite significant strides in foreclosure prevention efforts, it is clear that long term job creation will be an important driver for recovery and sustainable homeownership." According to these latest estimates, mortgage servicers have completed 1.3 million loan modifications so far in 2010, and almost 3.7 million since 2007. Additionally, HOPE NOW’s data continues to see declines in 60-day plus mortgage delinquencies which has been a positive trend since January 2010. Here are the notable highlights of the August 2010 data: ►Proprietary loan modifications completed decreased slightly—120,351 in July compared to 115,756 in August. ►Principal and interest reduction modifications completed continued at a consistent pace—103,029 in July to 104,988 in August and represented 91 percent of all proprietary loan modifications. ►60-plus days delinquencies decreased from 3,298,236 in July to 3,256,682 in August. ►Foreclosure starts increased from 226,664 in July to 245,015 in August. ►Completed foreclosure sales increased from 97,951 in July to 101,780 in August. "Mortgage servicers are the first responders to foreclosure prevention, loss mitigation and resolution, and they are taking the lead in reviewing, resolving and repairing an industry in crisis," said Schwartz. "HOPE NOW will continue to support distressed homeowners through face to face outreach events nationwide and by encouraging them to call 888-995-HOPE to connect with a non-profit housing counselor in their area." For more information, visit www.HopeNow.com.