HOPE NOW has released its first 2013 data, showing that approximately 245,000 homeowners have received permanent loan modifications from mortgage servicers so far this year. Of the 245,000 loan modifications completed from January through March, about 203,000 homeowners received proprietary loan modifications and 42,157 homeowners received loan modifications completed under the Home Affordable Modification Program (HAMP).
Since 2007, the mortgage industry has completed more than 6.32 million total permanent loan modifications for homeowners. Of those loan modifications, more than 5.14 million were proprietary programs and 1,178,639 were completed under HAMP.
Short sales for the first quarter of 2013 were approximately 84,000, for a total of over 1.23 million since December 2009. The combination of loan modifications and short sales has brought the total number of permanent, non-foreclosure solutions to almost 7.6 million.
During the first quarter of 2013, there were an estimated 162,000 completed foreclosure sales, compared to 188,000 completed during the previous quarter – a decline of almost 14 percent.
“The total number of permanent loan modifications completed by HOPE NOW’s mortgage servicing members, on behalf of homeowners, coupled with completed short sales, significantly outpaced foreclosure sales in the first quarter of the year," said Eric Selk, executive director of HOPE NOW.
Here are some other key metrics for Q1 2013 vs. Q4 2012:
►Foreclosure starts in Q1 2013 were approximately 472,000 vs. 362,000 for Q4 2012 – an increase of 30 percent.
►Short sales completed in Q1 2013 were approximately 84,000 vs. 106,000 for Q4 2012 – a decline of 21 percent.
The 245,000 loan modifications completed in the first quarter of 2013 compares to an estimated 203,000 completed during the first quarter of 2012.
Here are some other key metrics for Q1 2013 vs. Q1 2012:
►Foreclosure starts for Q1 2013 were approximately 472,000 vs. 534,000 for Q1 2012 – a decline of 12 percent.
►Foreclosure sales for Q1 2013 were approximately 162,000 vs. 210,000 for Q1 2012 – a decline of 22 percent.
►Short sales completed for Q1 2013 were approximately 84,000 vs. 100,000 for Q1 2012 – a decline of 16 percent.
For the month of March, there were an estimated 88,000 permanent loan modifications completed. Of that total, approximately 77,000 were proprietary loan modifications and 11,913 were completed under HAMP. Total modifications for the month represented a 10 percent increase over the previous month (80,000).
Here are proprietary loan modification characteristics for the month:
►Proprietary loan modifications that included fixed interest rates of five years or more accounted for 90 percent (69,000) of the total.
►Proprietary loan modifications with reduced principal and interest monthly payments accounted for 85 percent (65,000) of the total.
►Proprietary loan modifications with reduced principal and interest payments of more than 10 percent accounted for 75 percent (57,000) of the total.
Other key metrics for the month of March 2013 compared to February 2013:
►Foreclosure starts were estimated at 116,000 in March vs.192,000 in February – a decline of 40 percent.
►Foreclosure sales were estimated at 52,000 in March vs.48,000 in February – an increase of 8 percent.
►Short sales completed were approximately 28,000 in March vs.26,000 in February – an increase of 8 percent.
►Delinquencies of 60-plus days were approximately 2.38 million in March vs. 2.45 million in February – a decrease of three percent. (Delinquency data is extrapolated from data received by the Mortgage Bankers Association for the first quarter of 2013).