HOPE NOW: Loan Modifications Down 31% in The First Quarter

By: Matthew Graham •

Total loan modifications for the first quarter of 2012 fell 31% from the same quarter in 2011 to 207k, though serious delinquencies fell by 7% according to data released today by Hope Now.  The Home-Affordable Modification Program total of 60,225 accounts for just over one third of the total, with the other two thirds (147k) accounted for by proprietyary loan modifications.  5.42 million permanent modifications have been completed since 2007, according to the group. 

Highlights From The Release...

 

  • Total loan modifications were approximately 207,000. This represented a decline of 31% compared to the same time period in 2011. For loan modifications completed in 1Q 2012:
  • Approximately 147,000 were proprietary
  • 60,225 were completed under HAMP 
  • Loan modifications with reduced principal and interest payments accounted for approximately 77% (113,000) of all proprietary modifications.
  • Loan modifications with reduced principal and interest payments by 10% or greater accounted for approximately 72% (105,000) of all proprietary modifications.  
  • Fixed-rate modifications (initial fixed period of 5 years or more) accounted for 90% (132,000) of all proprietary modifications.
  • Foreclosure starts were 545,000, compared to 591,000 reported for the same time period in 2011 – a decrease of 8%.
  • Completed foreclosure sales were approximately 214,000, compared to 223,000 reported for the same time period in 2011 – a decrease of 4%.
  • 60+ days delinquencies for the month were 2.65 million, down from the 2.86 million reported in the first quarter of 2011 – a decrease of 7%.

 

 Faith Schwartz, Executive Director, issued this statement:

 “We continue to be encouraged by the efforts of mortgage servicers, non-profit counselors and others to educate homeowners on their options and find viable solutions for home retention, or graceful exit in some cases. In cases where home retention is not an alternative, the focus shifts to community stabilization through improving the short sale process and deed in lieu process, focusing on issues associated with vacant homes and enhancing public/private partnerships to support the housing market.