Home > Avid Law Center, Loan Restructuring > Nearly 900,000 HAMP Loan Modifications In Q3

Nearly 900,000 HAMP Loan Modifications In Q3

Loan ModifcationThe Administration released its monthly housing report last week which shows servicer progression in HAMP

The report shows that 883,075 permanent loan modifications have been offered through HAMP throughout October, compared to 856,974 in September. It is estimated that homeowners have saved almost nine and a half billion dollars in monthly payments through the program, with an average savings of $527 per month.

Specifically, Wells Fargo reports it has in active trial or has completed 721,116 mortgage loan modifications since its mortgage relief efforts began in January 2009, up from 716,176 at the end of September, according to LoanRateUpdate.com.

According to the Treasury’s November Housing Scorecard, Wells Fargo had the third highest amount of HAMP trial modifications in the month of October behind J.P. Morgan Chase and Bank of America.

Additionally, Hope Now, a private-sector alliance of mortgage servicers, investors and counselors, released its own October 2011 report showing that permanent loan modifications totaled almost 80,000 for the month, bringing the total for the year to approximately 885,000.

Highlights of HOPE NOW’s October 2011 data includes (From National Mortgage Professional Magazine):

Loan modifications

Total modifications were approximately 80,000:

  • 53,000 were proprietary.
  • 26,102 were completed under HAMP.

Total permanent loan modifications for homeowners in 2011 are approximately 885,000:

  • An estimated 582,000 are proprietary.
  • 303,426 have been completed under HAMP.

Foreclosures

  • Completed foreclosure sales were approximately 64,000, down from 68,000—a decrease of five percent from September.
  • Foreclosure starts were 209,000, up from 196,000—an increase of seven percent from September.

Delinquencies

  • Delinquencies of 60-plus days stood at 2.65 million, down six percent from 2.81 million in September.

Data on proprietary loan modification characteristics (October 2011)

  • Loan modifications with reduced principal and interest payments accounted for approximately 79 percent (42,000) of all proprietary modifications.
  • Loan modifications with reduced principal and interest payments by 10 percent or greater accounted for approximately 74 percent (40,000) of all proprietary modifications.
  • Fixed-rate modifications (initial fixed period of five years or more) accounted for approximately 86 percent (46,000) of all proprietary modifications.

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