Industry Completes 149,000 Permanent Loan Mods in August: Report

New data released by the HOPE NOW Alliance Thursday shows that during the month of August, mortgage servicers completed approximately 116,000 proprietary

loan modifications for homeowners and 33,000 mods under the Home Affordable Modification Program (HAMP), for an estimated total of 149,000.

Of particular note in the August report, is that 91 percent of all proprietary loan modifications for the month – 105,000 – included a reduction of borrowers’ monthly principal and interest payments.

According to HOPE NOW, this statistic indicates that the vast majority of loan modifications are being structured to make mortgages more sustainable for homeowners.

Based on the organization’s market data, mortgage servicers have completed 1.3 million loan modifications so far in 2010, and almost 3.7 million since 2007.

Faith Schwartz, senior advisor for HOPE NOW, commented, “HOPE NOW is encouraged by the ongoing efforts of its servicing members to seek and provide workout solutions for distressed homeowners. Homeowners and loan servicers are using all available avenues for preventing foreclosures, including utilizing a combination of forbearance, HAMP modifications, proprietary modifications, and even short sales and deed in lieu efforts.”

Additionally, HOPE NOW’s data continues to see declines in 60-day-plus mortgage delinquencies, which has been a positive trend showing up in the monthly report since January 2010.

As of the end of August, there were 3,256,682 mortgages at least two months past due, according to HOPE NOW. That’s down from 3,298,236 in July.

The report also shows that foreclosures are continuing to increase, despite the strides made in foreclosure prevention efforts.

HOPE NOW reports that foreclosure starts increased from 226,664 in July to 245,015 in August. Completed foreclosure sales were up from 97,951 to 101,780 for the month.

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