Nonprofit HOPE NOW is estimating so far in 2010 the industry has completed about 975,000 permanent loan modifications, both government and private, getting close to the one million mark.
In June, two thirds of more than 174,000 loan modifications finalized were proprietary loan modifications offered to homeowners who did not qualify for the federal Home Affordable Mortgage Program (HAMP).
Mortgage servicers completed 51,205 HAMP modifications and 123,150 proprietary loan modifications in June, up 10% from the 112,088 completed in May. Also in June other retention plans completed increased 12% from 74,004 in May to 83,222.
Furthermore from January 2010 through June 2010, about 78% of mortgage servicers' proprietary loan modifications included principal and interest reductions, "indicating servicers are providing lower monthly payments to homeowners for longer term sustainability."
The trend picked up steam in June when principal and interest reduction modifications completed increased 13% from 86,908 in May to 98,336.
HOPE NOW is a private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors.
