HOPE NOW has released its November 2013 loan modification data where an estimated 44,000 homeowners received permanent, affordable loan modifications from mortgage servicers during November. This total includes modifications completed under both proprietary programs and the government’s Home Affordable Modification Program (HAMP). While the total of 44,000 loan modifications for November represented a 12 percent decrease from the 50,000 completed in the month of October, the most recent data showed a 20 percent decline in foreclosure sales and a 17 percent decline in foreclosure starts between October and November.
The November 2013 total of approximately 44,000 loan modifications brings the total number to approximately 6.8 million since HOPE NOW began tracking the data in 2007. Loan modifications life to date:
►Approximately 5.5 million homeowners have received proprietary loan modifications since 2007.
►1,297,954 homeowners have received HAMP modifications.
In the month of November, there were approximately 41,000 foreclosure sales completed, compared to 51,000 completed in October—a decrease of 20 percent. There were approximately 84,000 foreclosure starts in November, compared with 102,000 recorded in October—representing a decrease of approximately 17 percent.
Delinquencies of 60 days or more were at 2.02 million for the month of November, compared to 2.04 million in October—a decrease of around one percent. Delinquency data is extrapolated from data received by the Mortgage Bankers Association (MBA) for the third quarter of 2013.
"As we approach the seven million mark for completed loan modifications, we remain convinced that the collaborative efforts of the industry, non-profits, government agencies and local community groups continues to make a positive impact on the nation’s housing market," said Eric Selk, HOPE NOW executive director. "In addition to continuation of our data reporting, HOPE NOW has already put together an aggressive borrower outreach schedule for 2014, which will also include events for service members, events co-sponsored by Congressional leaders and a new generation of virtual, online events. Our first face to face event is on the calendar for February 19th in Atlanta, co-sponsored by Making Home Affordable. Other events scheduled for the first half of the year, include Jacksonville in March, Riverside and Sacramento in April and Michigan in May. Outside of borrower outreach activities, HOPE NOW will continue to hold regular meetings with all stakeholders in order to help its members streamline processes and improve the overall customer experience as the regulatory climate shifts.”
Loan modifications completed via proprietary programs (non-HAMP) showed characteristics of sustainability and affordability for homeowners. It is important to note that the majority of these loans included both fixed interest rates and reduced principal/interest monthly payments.
For the month of November:
►Proprietary loan modifications that included fixed interest rates of five years or more accounted for 93 percent (29,000) of the total.
►Proprietary loan modifications with reduced principal and interest monthly payments accounted for 74 percent (23,000) of the total.
►Proprietary loan modifications with reduced principal and interest payments of more than 10 percent accounted for 68 percent (21,000) of the total.