Posted on February - 03 - 2011
1.76 Million Loan Mods in 2010
About 1.76 million financially pressed homeowners received permanent loan modifications in 2010, well exceeding the number who lost their homes to foreclosure but also well below the number who were served with foreclosure papers for the first time.
The figure represents an increase of more than half a million permanent loan modifications over 2009, virtually all of them coming from the government’s Home Affordable Modification Program (HAMP), according to figures released today by the HOPE NOW alliance. Proprietary modifications, those done under a lender’s own terms, were largely unchanged from 2009 levels, but still made up over two-thirds of the 2010 total. There were 1.24 million proprietary modifications last year and 513,000 HAMP permanent modifications completed in 2010, compared to 1.17 million proprietary and 67,000 HAMP permanent modifications in all of 2009, when the HAMP program was still getting underway. Faith Schwartz, HOPE NOW executive director, touted the fact that the 1.76 million homeowners obtaining loan modifications well surpassed the 1.07 million who lost their homes to foreclosure in 2010. However, the figure fell well short of the 2.62 million who were served with foreclosure papers for the first time during the year, although some of those may have subsequently been able to obtain loan modifications. “2010 was a very challenging year for the housing market, but HOPE NOW’s data continues to support the fact that significant strides have been made to avail homeowners of all options before going to foreclosure,” Schwartz said. Schwartz said the HOPE NOW coalition, which includes many of the nation’s largest lenders, plans to continue conducting large-scale outreach events in 2011, in cooperation with the Treasury Department, to bring together at-risk homeowners and lender representatives for the purpose of seeking foreclosure alternatives. The organization has conducted about 100 such events around the country since 2007. The report indicated that over 80 percent of the more than 1 million proprietary loan modifications featured principal and/or interest reductions, with about three-quarters of them featuring principal and interest reductions of 10 percent or more. Permanent loan modifications under the government’s HAMP program surged early in 2010, but fell off sharply during the latter part of the year as mortgage servicers worked through a backlog of trial modifications and the number of new admissions to the program dropped. The program has lately been initiating about 30,000 trial modifications a month, a preliminary step toward a permanent modification.
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