HOPE NOW, the private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors has announced that its first quarter 2010 data shows a surge in solutions for troubled homeowners, including completed loan modifications, trial modifications and other workout plans. In all, the industry completed almost half a million loan modifications for homeowners (476,192) in the first quarter of 2010--a 29 percent increase from same quarter last year. These modifications combine proprietary modifications with Home Affordable Modification Program (HAMP) permanent modification solutions, as reported monthly by Treasury.
In the first quarter of 2010, the industry completed 312,329 proprietary loan modifications and 163,863 permanent HAMP modifications.
Since July of 2007, over 2.88 million borrowers have been offered modifications that allow them to stay in their homes. HOPE NOW and its Alliance partners recently expanded and retooled survey data reporting, collecting only proprietary modifications and other non-HAMP Industry solutions, to show the breadth of workouts the industry is offering and implementing for at-risk homeowners.
Data highlights: 1Q 2009 vs.1Q 2010:
►Total workout solutions increased from 0.71M to 1.36M (+92 percent)
►Modifications completed increased from 370,440 to 476,190 (+29 percent)
►Foreclosure starts decreased from 728,780 to 691,020 (-5 percent)
►60 days+ delinquency increased from 2.85M to 3.99M (+40 percent)
►Completed foreclosure sales increased from 201,310 to 291,380 (+45 percent)
“At the beginning of 2009, after a tremendously challenging 18 months ramping up to meet the crisis, HOPE NOW and its Alliance partners promised distressed borrowers that we would re-double our efforts to help struggling homeowners," said Faith Schwartz, executive director of HOPE NOW. "We continue to work collaboratively with Treasury, HUD, the Federal Reserve Banks, regulators and non-profit counseling agencies to reach borrowers at-risk and implement proprietary and Government loan programs, such as Making Home Affordable. HOPE NOW members are working aggressively to manage multiple solutions to avoid foreclosure. These include outreach through support of 888-995-HOPE, more than 70 homeownership preservation events held nationwide to date, loan modifications which include P&I reductions and liquidation alternatives for borrowers seeking a graceful exit to homeownership. It is clear our work is far from over. Alliance members have demonstrated their commitment to helping homeowners, their ability to find workable solutions and their willingness to implement multiple intervention solutions to stabilize markets and homeowners. We will continue to report on our progress and work with borrowers via all of the tools at our disposal.”
For more information, visit www.hopenow.com.