HOPE NOW: Housing Market Continues To Improve

Posted by Patrick Barnard on August 25, 2015 No Comments
Categories : Mortgage Servicing

Mortgage servicers completed an estimated 34,000 permanent loan modifications in June – about the same number completed in May – according to HOPE NOW, a voluntary, private-sector alliance of mortgage servicers, investors, mortgage insurers and nonprofit counselors.

Of those, about 25,000 were proprietary loan modifications and 9,741 were completed via the Home Affordable Modification Program (HAMP).

Of the proprietary loan modifications completed in June, approximately 67%, or about 17,000, had reduced monthly principal and interest payments of more than 10%.

In total, servicers offered approximately 128,000 foreclosure alternatives to borrowers in June.

Looking at other key statistics for the month, foreclosure sales were estimated at 30,000, an increase of 3% compared with 29,000 in May.

Foreclosure starts were estimated at 58,000 in June – a decrease of about 2% compared with 59,000 in May.

Approximately 8,200 short sales were completed in June – an increase of about 8% compared with 7,600 in May.

HOPE NOW also released data for the second quarter showing that mortgage servicers completed approximately 411,000 non-foreclosure actions during the quarter – a decrease of 7% compared with 444,000 in the first quarter and a decrease of 10% compared with the 456,000 recorded in the second quarter of 2014.

Of these, servicers completed an estimated 113,000 loan modifications – a decrease of 2% compared with the 116,000 completed during the first quarter and a decrease of 10% compared with the 125,000 recorded in the second quarter of 2014.

Of the 113,000 loan modifications in the second quarter, about 78,000 were proprietary, while 35,738 were through HAMP.

HOPE NOW points out that non-foreclosure solutions outpaced completed foreclosure sales by a margin of more than four to one (411,000 solutions versus 89,000 foreclosure sales) during the second quarter.

For every foreclosure sale, mortgage servicers offered 4.6 solutions. This is due to the fact that there are several long-term and short-term solutions available to at-risk homeowners when facing delinquency or foreclosure, HOPE NOW explains.

Short sales totaled about 24,000 in the second quarter – a decrease of about 31% compared with the approximately 35,000 recorded in the second quarter of 2014. Other non-foreclosure solutions (including repayment plans, deeds-in-lieu, other retention plans and liquidation plans) made up the rest of the total number.

About 1.85 million loans were seriously delinquent (60 days or more past due) in the first quarter – up about 6% compared with the approximately 1.74 million that were seriously delinquent in the first quarter and down 12% compared with the 1.98 million that were seriously delinquent in the second quarter of 2014.

There were about 89,000 foreclosure sales in the second quarter – a decrease of 7% compared with the 96,000 recorded in the first quarter and a decrease of 24% compared with the 117,000 completed during the second quarter of 2014.

About 176,000 homeowners started the foreclosure process in the second quarter – a decrease of 17% compared with the approximately 212,000 recorded in the first quarter and a decrease of about 13% compared with the approximately 203,000 recorded in the second quarter.

Deeds-in-lieu totaled approximately 5,400 in the second quarter – a decrease of 28% compared with the approximately 7,500 recorded in the second quarter of last year.

‘Our data continues to show a consistent trend of non-foreclosure solutions outpacing completed foreclosure sales, which means that millions of families are receiving the help they need to avoid foreclosure,’ says Eric Selk, director of HOPE NOW, in a statement. ‘The picture shows that more homeowners have been helped by the industry than have gone through a completed foreclosure. Completed foreclosures since 2007 are approximately 6.1 million compared to 24 million non-foreclosure solutions. Within the 24 million helped are some who fell out of previous solutions and were offered a secondary alternative by a mortgage servicer. This highlights the industry's commitment to assisting families and contributing to the overall economic recovery from the foreclosure crisis.

‘As the overall housing market improves each quarter, HOPE NOW is focusing its efforts on the markets that have been slower to recover,’ Selk says. ‘While home-retention options are the desired outcome for most homeowners, there is an impressive number of solutions at the industry's disposal for handling cases in which a HAMP modification or proprietary modification is not viable.

‘Often, these short-term alternatives and liquidation options are in the best interest of the homeowner and, many times, at their request in the case of short sales and deeds-in-lieu,’ he adds. ‘HOPE NOW's members have always taken a collaborative approach to assisting families, and this coalition of partnerships has led to a significant nationwide housing recovery.’

For more, click here.

Register here to receive our Latest Headlines email newsletter

Leave a Comment