Industry measures intended to keep homeowners out of foreclosure have slipped, according to ‘Analysis of Subprime Mortgage Servicing Performance,’ a recent report from the State Foreclosure Prevention Working Group. The organization is a group of state attorneys general and state banking regulators working to prevent home foreclosures.
‘Too many homeowners face foreclosure without receiving any meaningful assistance by their mortgage servicer – a reality that is growing worse rather than better, as the number of delinquent loans, prime and subprime, increases,’ the report says.
Nearly eight out of ten seriously delinquent homeowners are not on track for any loan workout or loss-mitigation assistance to enable them to avoid foreclosure – a higher percentage than the group found in its April report.
‘Servicers appear to have reached the low-hanging fruit of subprime loans facing interest rate resets, while not developing effective approaches to address the bulk of subprime loans which are in default before interest rate resets,’ the report notes.
Source: State Foreclosure Prevention Working Group