HOPE NOW has released its October 2011 data showing that permanent loan modifications totaled almost 80,000 for the month, bringing the total for the year to approximately 885,000. Included in the data is the continuing trend that the majority of proprietary loan modifications have lower monthly principal and interest payments and fixed interest rates of more than five years. Additionally, October's data showed declines in 60-plus days delinquent loans and foreclosure sales.
“Last month, the industry hit a significant milestone with five million completed loan modifications since 2007. With almost a million loan mods completed this year, it is clear that the industry and its partners continue to invest a tremendous amount of resources into assisting homeowners across the country," said Faith Schwartz,HOPE NOW executive director. "Mortgage servicers, non-profit housing counselors and the government continue to incorporate innovative ways to reach families struggling with their mortgages and each month we see the results of these collaborative efforts."
Since HOPE NOW began reporting data in 2007, the mortgage industry has completed 5.05 million loan modifications for homeowners. This includes approximately 4.17 million proprietary modifications and 883,076 completed under the Home Affordable Modification Program (HAMP). For the month of October, more than 53,000 loan modifications were proprietary and 26,102 were HAMP modifications.
According to the survey data, the inventory of 60-day plus delinquencies is 2.65 million for October 2011, down from the 2.81 million reported in September. Completed foreclosure sales for October 2011 decreased from the previous month—64,000 compared to 68,000. Foreclosure starts increased by seven percent for the month—209,000 compared to 196,000.
Highlights of HOPE NOW's October 2011 data includes:
Loan modifications
Total modifications were approximately 80,000:
►53,000 were proprietary.
►26,102 were completed under HAMP.
Total permanent loan modifications for homeowners in 2011 are approximately 885,000:
►An estimated 582,000 are proprietary.
►303,426 have been completed under HAMP.
Foreclosures
►Completed foreclosure sales were approximately 64,000, down from 68,000—a decrease of five percent from September.
►Foreclosure starts were 209,000, up from 196,000—an increase of seven percent from September.
Delinquencies
►Delinquencies of 60-plus days stood at 2.65 million, down six percent from 2.81 million in September.
Data on proprietary loan modification characteristics (October 2011)
►Loan modifications with reduced principal and interest payments accounted for approximately 79 percent (42,000) of all proprietary modifications.
►Loan modifications with reduced principal and interest payments by 10 percent or greater accounted for approximately 74 percent (40,000) of all proprietary modifications.
►Fixed-rate modifications (initial fixed period of five years or more) accounted for approximately 86 percent (46,000) of all proprietary modifications.
