In its March 2012 report, HOPE NOW has reported that an estimated 207,000 homeowners received permanent loan modifications from mortgage servicers for the first quarter of 2012. The March 2012 data shows that approximately 147,000 homeowners received proprietary loan modifications and another 60,225 homeowners had loan modifications completed under the Home Affordable Modification Program (HAMP), during Q1 of 2012. Since 2007, the mortgage industry has completed 5.42 million total permanent loan modifications for homeowners.
The HOPE NOW data for March 2012 also shows that modifications are lowering monthly payments for homeowners and lowering their interest rates. Of the proprietary modifications completed in the first quarter of 2012, approximately 77 percent (113,000) included reduced monthly principal and interest payments and 90 percent (132,000) had fixed interest rates of five or more years. Additionally, proprietary loan modifications that reduced principal and interest payments by more than 10 percent represented 72 percent (105,000) of the quarterly total. The data showed a seven percent drop in serious delinquencies (60-plus days or more past due) from the same period in 2011.
“We continue to be encouraged by the efforts of mortgage servicers, non-profit counselors and others to educate homeowners on their options and find viable solutions for home retention, or graceful exit in some cases," said Faith Schwartz, executive director of HOPE NOW. "In cases where home retention is not an alternative, the focus shifts to community stabilization through improving the short sale process and deed in lieu process, focusing on issues associated with vacant homes and enhancing public/private partnerships to support the housing market."
Foreclosure starts and sales were also down from the same period in 2011. For the first quarter of 2012, there were approximately 545,000 foreclosure starts, a decline of eight percent compared to the first quarter of 2011. Foreclosure sales for the first quarter of 2012 were 214,000, representing a decline of four percent compared to the same period in 2011.
Some of the highlights of the 2012 Q1 data:
►Total loan modifications were approximately 207,000. This represented a decline of 31 percent compared to the same time period in 2011. For loan modifications completed in the first quarter of 2012, approximately 147,000 were proprietary and 60,225 were completed under HAMP.
►Loan modifications with reduced principal and interest payments accounted for approximately 77 percent (113,000) of all proprietary modifications.
►Loan modifications with reduced principal and interest payments by 10 percent or greater accounted for approximately 72 percent (105,000) of all proprietary modifications.
►Fixed-rate modifications (initial fixed period of five years or more) accounted for 90 percent (132,000) of all proprietary modifications.
►Foreclosure starts were 545,000, compared to 591,000 reported for the same time period in 2011—a decrease of eight percent.
►Completed foreclosure sales were approximately 214,000, compared to 223,000 reported for the same time period in 2011—a decrease of four percent.
►Sixty-plus days delinquencies for the month were 2.65 million, down from the 2.86 million reported in the first quarter of 2011—a decrease of seven percent.