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More Than 5.9 Million Modifications Established Since 2009

May 04, 2012

The U.S. Department of Housing & Urban Development (HUD) and the U.S. Department of the Treasury have jointly released the April edition of the Obama Administration’s Housing Scorecard, a comprehensive report on the nation’s housing market. Data in the April Housing Scorecard show some promising signs of stability, though the overall outlook remains mixed. Mortgage delinquencies have declined for four consecutive months and remain substantially below year ago levels, while sales of existing homes in the first quarter were 5.3 percent higher than one year ago. Data on home prices were soft in many mortgage markets, though adjusting for the traditionally slow winter months reveals the first uptick in prices since April 2011.  “We’re making important progress in providing relief to homeowners under the Obama Administration’s programs," said HUD Assistant Secretary Raphael Bostic. "With fewer borrowers falling behind on their mortgages and almost half a million families taking advantage of our enhanced Home Affordable Refinance Program—standing to save on average $2,500 per year —it’s clear that the Administration’s efforts continue to provide significant positive benefits.” The April Housing Scorecard features key data on the health of the housing market and the impact of the Administration’s foreclosure prevention programs, including: ►The Administration’s recovery efforts continue to help millions of families deal with the worst economic crisis since the Great Depression. More than 5.9 million modification arrangements were started between April 2009 and the end of March 2012 – including more than 1.8 million Home Affordable Modification Program (HAMP) trial modification starts and more than 1.3 million FHA loss mitigation and early delinquency interventions. The Administration’s programs continue to encourage improved standards and processes in the industry, with HOPE NOW lenders offering families and individuals more than 2.8 million proprietary mortgage modifications through February. ►More than 1.1 million homeowner assistance actions were granted through Making Home Affordable. Eligible homeowners entering HAMP continue to demonstrate a high likelihood of long-term success in the program. As of March, more than 990,000 homeowners received a permanent HAMP modification, saving approximately $535 on their mortgage payments each month with a total estimated savings of $12.2 billion to date. Eighty-six percent of homeowners entering the program in the last 21 months have received a permanent modification, with an average trial period of 3.5 months. After six months in the program, more than 94 percent of homeowners remain in their HAMP permanent modification. The Office of the Comptroller of the Currency (OCC)’s Mortgage Metrics Report for the Fourth Quarter of 2011 found that HAMP modifications continue to exhibit lower delinquency and re-default rates than industry modifications.  "The Administration's programs have helped millions of homeowners achieve sustainable mortgage assistance to prevent foreclosure," said Treasury Assistant Secretary for Financial Stability Tim Massad. “The standards these programs have created continue to prompt the mortgage industry to provide improved outcomes for homeowners more broadly.”
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May 04, 2012
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