An estimated 74,000 homeowners received mortgage modifications in January, down 27% from a year earlier, when 101,000 borrowers successfully completed trials.

The data, released Monday by Hope Now, show mortgage servicers completed about 56,000 proprietary loan modifications for homeowners and almost 18,000 Home Affordable Modification Program modifications, as reported by the Treasury Department.

By comparison, the number of modifications done by Wells Fargo (WFC) (both active and completed) was slightly more than 5,000 in January, down from just less than 14,000 in January 2011.

While Wells Fargo numbers include those homeowners still in the trial phase — homeowners given mods participate in a three-month trial before their mods become permanent to test if the homeowners will pay — the numbers still reflect a major downturn in the number of loan modifications. 

Hope Now said proprietary loan modifications in January “continued to show characteristics of sustainability, which the majority having lower principal and interest monthly payments as well as fixed interest rates of five years or more.” This is consistent with data from prior months.

The data also show foreclosure sales slightly overtook loan modifications for the first time since October 2009. In January, there were about 79,000 completed foreclosure sales. The number of foreclosures sales last January was about 73,000, which was outpaced by the number of loan modifications. 

Delinquencies of more than 60 days stayed flat with a year ago at about 2.77 million or about 6% of all loans.

Most Popular Articles

Here are the mortgage lenders that borrowers like the most

J.D. Power’s 2019 U.S. Primary Mortgage Origination Satisfaction Study, released Thursday morning, showed that there are some lenders that customers seem to love working with more than others. Here are the ones that borrowers are partial to.

Nov 14, 2019 By

Latest Articles

Congressional vote on “de facto QM Patch” postponed

The House Financial Services Committee postponed a vote on H.R. 2445 on Wednesday, a bill that would fix the so-called QM Patch that’s set to expire in early 2021.

Nov 15, 2019 By