HOPE NOW has released its January 2012 loan modification data, which shows that an estimated 74,000 homeowners received permanent, affordable loan modifications from mortgage servicers in the first month of 2012. The reported data for January shows that mortgage servicers completed approximately 56,000 proprietary loan modifications for homeowners and 17,992 Home Affordable Modification Program (HAMP) modifications (as reported by U.S. Department of the Treasury). Proprietary loan modifications continued to show characteristics of sustainability, which the majority having lower principal and interest monthly payments as well as fixed interest rates of five years or more. This trend has been consistent with data from previous months.
The January data also showed that foreclosure sales slightly outpaced loan modifications for the first time since October of 2009. For the month of January, there were approximately 79,000 completed foreclosure sales. Delinquencies of 60 days or more continued to remain flat at about 2.77 million, or approximately six percent of all loans.
“HOPE NOW and its members have charged full speed into 2012 in the ongoing collaborative efforts to assist at-risk homeowners," said Faith Schwartz, executive director of HOPE NOW. "Loan modifications continue at a steady pace and proprietary mods continue to show real signs of sustainability and affordability for homeowners. This is important to note, as these characteristics are vital to housing market recovery."
Highlights of the January 2012 data includes:
►Total permanent loan modifications were approximately 74,000
►Approximately 56,000 were proprietary
►17,992 were completed under HAMP
►Completed foreclosure sales were approximately 79,000.
►Loan modifications with reduced principal and interest payments accounted for approximately 67 percent (38,000) of all proprietary modifications.
►Fixed-rate modifications (initial fixed period of five years or more) accounted for 89 percent (50,000) of all proprietary modifications.
►60-plus days delinquencies for January 2012 were 2.77 million.