HOPE NOW, the private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors, released its October 2010 survey data today which estimates the industry completed more than 1.54 million permanent loan modifications for at-risk homeowners from January through October 2010.
That translates to an average of 154,000 homeowners per month who have been able to remain in their homes with an affordable loan modification solution. The reported data for October shows mortgage servicers completed approximately 101,000 proprietary loan modifications for homeowners and 24,000 Home Affordable Modification Program (HAMP) modifications (as reported by U.S. Treasury Department), for an estimated total of 125,000.
“There were anomalies in the October data that affected 60 day plus delinquency, as well as foreclosure, metrics which we believe may be largely attributed to widespread foreclosure delays across the country," said Faith Schwartz, executive director of HOPE NOW. "Despite these irregularities the mortgage industry’s efforts to keep homeowners in their homes and offer viable mortgage solutions continues to show strong results each month. Far more homeowners are receiving workout solutions—including loan modifications—than are going to foreclosure sale each month."
Of particular note in October’s data is the effect foreclosure delays and pauses (initiated by some mortgage servicers nationwide) had on the delinquency and foreclosure numbers for the month. Specifically foreclosure starts and sales dropped to 205,000 and 69,000, respectively while the number of homeowners more than 60 days delinquent increased slightly to 3.4 million.
Here are the highlights of the October 2010 monthly data (based on industry estimates):
►Proprietary loan modifications decreased—117,000 in September compared to 101,000 in October.
►60-plus days delinquencies increased—3.2 million in September compared to 3.4 million in October.
►Foreclosure starts decreased from 245,000 in September to 205,000 in October.
►Completed foreclosure sales decreased from 118,000 in September to 69,000 in October.
►Loan modifications outpaced foreclosure sales in October 125,000 to 69,000.
"Servicers continue to review processes they have in place and we continue to see an emphasis on foreclosure prevention solutions nationwide. This includes forbearance, HAMP modifications, sustainable proprietary modifications, HAFA, short sales and deeds in lieu of foreclosure," said Schwartz. "Unemployment remains a key issue and the industry is working hand in hand with the government and non-profit communities to assist borrowers in the states designated by the Administration for the Hardest Hit Fund. HOPE NOW will continue to work with Federal and local governments to use all homeowner programs at their disposal."
For more information, visit www.hopenow.com.