HOPE NOW has released its March 2011 loan modification data, which shows that an estimated 210,000 homeowners received permanent, proprietary loan modifications from mortgage servicers for the first quarter of 2011. This estimate does not include loan modifications through Home Affordable Modification Program (HAMP), and industry totals will be updated once official government reports are published.
Of the proprietary modifications completed in the first quarter of 2011, approximately 81 percent (170,000) included reduced monthly principal and interest payments. Additionally, proprietary loan modifications that reduced principal and interest payments by more than 10 percent represented 57 percent (120,000) of the quarterly total.
“We were pleased to see the increase in proprietary loan modifications from the previous month, despite the challenges facing the industry," said Faith Schwartz, executive director of HOPE NOW. "This reversed a downward trend in proprietary modifications seen in the previous few months."
Highlights of the March/Quarterly 2011 data include:
►In the first quarter 2011, 264,000 total modifications have been completed. This includes 210,000 proprietary modifications through March, and 54,000 HAMP modifications for January and February (Making Home Affordable “HAMP” numbers for March not reported in this report).
►Proprietary modifications for the month were approximately 77,000, up from 61,000 in February—an increase of 26 percent.
►Loan modifications with reduced principal and interest payments accounted for approximately 81 percent (62,000) of all proprietary modifications.
►Loan modifications with reduced principal and interest payments by 10 percent or greater accounted for approximately 52 percent (40,000) of all proprietary modifications.
►Fixed-rate modifications (initial fixed period of five years or more) accounted for 76 percent (58,000) of all proprietary modifications.
►Foreclosure starts for the month were 217,000, up from the 180,000 reported for February 2011—an increase of 21 percent.
►Completed foreclosure sales for the month were approximately 85,000, up from the 62,000 from February 2011—an increase of 35 percent.
►60-plus days delinquencies for the month were 2.63 million, down from the 2.78 million reported in February 2011—a decrease of six percent.
"While it’s encouraging to see a continued decline in 60-day delinquency we realize many homeowners continue to be at risk of foreclosure, as evidenced by the increase in foreclosure sales in March," said Schwartz. "Homeowners need the ongoing focus and support of loan servicers and non-profit housing counselors as they continue to move through the resolution process. This includes explaining all options, which may include a short sale or deed-in-lieu of foreclosure."
