Loan modification data collected through May shows substantial industry progress on delinquent loans, according to HOPE NOW.
More than 3.2 million homeowners have received permanent modifications since HOPE NOW began collecting survey data in July 2007. The total reflects proprietary loan modifications as well as those completed under the Administration’s Home Affordable Modification Program (HAMP).
More than 9.5 million workout solutions, including repayment plans, forbearance and other foreclosure prevention options, have also been provided by mortgage servicers in the same time period.
In May, the industry completed approximately 159,000 total loan modifications, including 112,000 proprietary and 47,000 HAMP modifications, according to HOPE NOW.
It also reported that 800,536 permanent modifications have been completed so far this year. Proprietary modifications (non-HAMP) are being designed for longer-term sustainability, with 77% of such modifications including lower principal and interest payments.
The May survey results indicated that delinquencies more than 60 days accounted for 7% of total loans, foreclosure starts totaled 205,479, there were 98,963 total foreclosure sales, total loan modifications were 159,812, lower principal and interest payments were offered on 77.5% of proprietary modifications, and there were 402,920 workout solutions offered by servicers.
“The latest results continue to support the industry’s unprecedented efforts to assist borrowers across the country using myriad foreclosure prevention programs,” said Faith Schwartz, a senior advisor for HOPE NOW.
“We feel confident that these comprehensive efforts will be reflected in future data and lead to further advances in effectively offering homeowners real mortgage solutions,” Schwartz added.
HOPE NOW is a private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors.