Hope Now reports a mixed-bag of results
Hope Now, an alliance of mortgage servicers and home retention counselors who are pushing to save distressed properties, said the month of February brought mixed results with servicers reporting fewer loan modifications and falling delinquency rates. In February, the number of completed loan mods fell from 100,186 to 87,000. That drop is even greater when considering the alliance reported 110,463 loan modifications just two months prior. At the same time, the alliance noticed a silver lining with the number of loans classified as 60 or more days delinquent falling to 2.78 million mortgages in February, down from 2.95 million in January. In February, mortgage servicers finalized 61,000 proprietary loan modifications and 26,147 loan modifications through the federal government's Home Affordable Modification Program, or HAMP. "While we have seen a decline in overall modifications, we are pleased to see the serious delinquencies once again declined in the month of February, consistent with a trend we have seen in earlier months," said Faith Schwartz, executive director of HOPE Now. Loan modifications handled through a reduction in principal and interest accounted for 81% of all proprietary modifications in February. Of those, 59% of the loan modifications had principal and interest payment reductions that ran at least 10% or greater. Write to Kerri Panchuk.