The servicing industry is closing in on the 1 million loan modification mark for the year, having completed about 975,000 permanent modifications so far, according to HOPE NOW. In June, the industry completed about 123,000 proprietary loan modifications for homeowners, which HOPE NOW says represented a 10% increase from the previous month.
From January through June, about 78% of mortgage servicers' proprietary loan modifications (i.e., mods performed outside of the Home Affordable Modification Program) included principal and interest reductions – up 10% from May.
‘We saw significant increases across the board in permanent loan modifications as well as other solutions,’ says Faith Schwartz, HOPE NOW's senior adviser. ‘Most importantly, servicers were able to offer principal and interest reductions in nearly 80 percent of their proprietary loan mods.’
Foreclosure starts and sales decreased 7% and 9%, respectively, from May to June, HOPE NOW adds.
SOURCE: HOPE NOW