HOPE NOW, the voluntary, private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors, wrapped up its fourth year of outreach efforts and assistance to the nation’s at-risk homeowners. The industry-led organization is poised for a busy 2011 in the areas of homeowner education/outreach, data reporting on aid to homeowners, technology innovation and mortgage issues management.
HOPE NOW highlights for 2010 included:
►Free events for at-risk homeowners: Organization of, and participation in, 40 free homeowner outreach events, held in 29 cities nationwide and attended by approximately 30,000 families. These events were held in partnership with the Obama Administration’s Making Home Affordable Program and NeighborWorks America.
►Special outreach to Indiana and the Gulf Coast: Participation in four additional free homeowner outreach events in partnership with NeighborWorks America, local small business associations and several state foreclosure task forces in Indiana and the Gulf Coast region (Louisiana, Mississippi, Alabama and Florida).
►Reports on loan mod results: Monthly reporting of foreclosure prevention data from participating servicers, which showed approximately 1.65 million permanent loan modifications versus one million foreclosure sales from January 2010 through November 2010.
►Web help for homeowners and counselors: Continuation of a strong partnership with HOPE LoanPort, a separate non-profit entity, originally developed by HOPE NOW, which has created a web-based portal for streamlined submission of loan modification applications and faster decision making by mortgage servicers. Currently, 12 major mortgage servicers, along with 1,700 housing counselors from 428 organizations across the country, are using HOPE LoanPort.
►Information for policy makers: Testimony provided for Congress on several occasions, regarding the unprecedented collaborative efforts of the mortgage industry, government and non-profit community to preserve homeownership in the United States. HOPE NOW will continue to brief legislators and congressional staff on foreclosure prevention efforts.
In 2011, HOPE NOW plans to continue its aggressive homeowner outreach, which includes member participation in one major outreach event per month, in partnership with the U.S. Department of the Treasury. These events are slated for regions that have been affected the most by foreclosure and mortgage delinquency. Events scheduled for Las Vegas, Nevada and San Jose, Calif. are already on the books for January and February, respectively.
Another major goal for the coming year is for HOPE NOW, and its members, to drive more efficient, effective and technology driven mortgage solutions for homeowners, counselors and loan servicers.
Additionally, HOPE NOW’s Web site (www.hopenow.com) will continue to be the premier free resource for homeowners, mortgage professionals, housing counselors and government agencies.
The organization also officially announced that Faith Schwartz would remain as HOPE NOW executive director for 2011.
According to the latest HOPE NOW data, an estimated 1.65 million homeowners have received permanent loan modifications from mortgage servicers since January 2010. The reported data for November shows that, for the month, mortgage servicers completed approximately 82,000 proprietary loan modifications for homeowners and 29,972 Home Affordable Modification Program (HAMP) modifications (as reported by the Treasury Department), for an estimated total of 112,000. Important to note in the current data is that for every foreclosure sale that occurred in November, HOPE NOW estimates that there were two permanent loan modifications completed.
Additionally, proprietary loan modifications were completed at a rate of 2.4 per every HAMP modification completed in 2010. Despite difficult economic challenges, such as unemployment, twice as many at-risk homeowners receive a loan modification than go to foreclosure.
Here are some of the highlights of the November 2010 data:
►Total permanent loan modifications were approximately 112,000
►Loan modifications with reduced principal and interest payments accounted for 84 percent (69,000) of all proprietary modifications.
►Fixed-rate modifications (initial fixed period of five years or more) accounted for 90 percent (74,000) of all proprietary modifications.
►Completed foreclosure sales were approximately 55,000, down from 69,000 the previous month.
►Loan modifications outpaced foreclosure sales in November 112,000 to 55,000.
►60-plus days delinquencies were 3.1 million, a decrease from the previous month’s estimate of 3.4 million.
For more information, visit www.hopenow.com.