Mortgage servicers participating in the Hope Now
private-sector alliance conducted more than 112,000 modifications in May through its own programs, compared to 47,724 permanent modifications
converted through the Home Affordable Modification Program (HAMP) in the same month.
Hope Now is an alliance of mortgage servicers, investors, insurers and nonprofit counselors. Since July 2007, Hope Now tracked more than 3.2m loan modifications both through private sector programs and HAMP. In that time, servicers conducted 9.5m total workouts that include repayment plans, forbearance and other options like short sales and deeds-in-lieu of foreclosure.
The industry completed roughly 159,000 modifications total in May through both HAMP and private programs.
So far, through 2010, servicers completed more than 800,000 permanent loan modifications. About 77% of them were through private-sector programs that include lower principal and interest payments. According to Hope Now, this means programs are being designed for longer-term sustainability and homeownership.
But according to the Office of the Comptroller of the Currency
(OCC) and the Office of Thrift Supervision
(OTS), HAMP modifications have had a lower number of delinquencies three months after the modification. At three months, 16.7% of HAMP modifications were 30 or more days delinquent, compared to 24.6% of all modifications, according to the report.
“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, senior advisor for Hope Now. “The industry has also implemented many other retention efforts that go a long way to help borrowers.”
Write to Jon Prior