HOPE NOW, the private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors released its September 2010 survey data, which estimates the industry completed close to 150,000 permanent loan modifications for the month. The reported data for September shows that mortgage servicers completed approximately 120,000 proprietary loan modifications for homeowners and 27,840 Home Affordable Modification Program (HAMP) modifications (as reported by U.S. Department of the Treasury), for an estimated total of 147,000. The total number of loan modifications with principal and interest payment reductions declined slightly for the month of September (93,000 compared to 105,000 in August), but 78 percent of the total proprietary modifications completed in September provide a reduced monthly payment for homeowners. HOPE NOW is currently reporting additional metrics on types of proprietary modifications being offered to distressed homeowners in order to better assess sustainability. Since June 2010, HOPE Now estimates that loan modifications that provide homeowners with reduced principal and interest payments of 10 percent or more have accounted for 53 percent (255,000) of proprietary loan modifications in 2010. Additionally, it is estimated that loan modifications with a fixed rate period of five or more years account for 80 percent (381,000) of all proprietary modifications done this year by mortgage servicers. This is significant when assessing the affordability and viability of loan modifications currently being provided by the mortgage industry. According to these latest estimates, mortgage servicers have completed 1.4 million loan modifications in 2010. Here are the notable highlights of the September 2010 monthly data (based on industry estimates): Proprietary loan modifications increased: 116,000 in August compared to 120,000 in September. For the month: ►Principal and interest (P&I) reduction modifications completed were 93,000 (78 percent of the total). ►There were 66,000 loan modifications with P&I reductions of more than 10 percent (55 percent of the total). ►There were 98,000 loan modifications with a fixed rate period of five years or more (82 percent of the total). ►60-plus days delinquencies remained flat - 3.2 million in both August and September. ►Foreclosure starts increased slightly from 245,000 in August to 250,000 in September. ►Completed foreclosure sales increased from 102,000 in August to 120,000 in September. “The most important take away from HOPE NOW’s September data is that we now have good metrics on the sustainability of proprietary loan modifications being done by our servicer members," said Faith Schwartz, senior adviser for HOPE NOW. "While HAMP has provided a road map for other solutions, and is still the first line of defense for a delinquent homeowner, if the borrower is not eligible for a HAMP modification, a proprietary modification is able to fill the gap and offer a viable and sustainable solution to avoid foreclosure, enabling the borrower to stay in their home." For more information, visit www.HopeNow.com.