Regardless Of Classification, Mods Are On The Rise

Posted by Orb Staff on May 28, 2009 No Comments
Categories : Mortgage Servicing

tal number of loan modifications executed in April dropped from March's total, according to HOPE NOW data, but the alliance says the dip should be attributed to terminology and not a deflated effort from servicers. About 127,000 modifications were performed in April, down from March's total of 133,910. Repayment plans grew month-over-month, however, from 114,994 in March to 143,000 in April. "The increase in repayment plans recorded in April is due, in part, to the first trial modifications completed under the administration's program," says HOPE NOW's chief statistician, Michael Bright, referring to the Home Affordable Modification Program (HAMP). "Assuming borrowers complete the trial period successfully as mandated by the government, these loans will eventually be recorded as having been modified." Under the conventions of the HAMP, loans are subject to a three-month trial period before a modification can be completed and, therefore, are often classified as repayment plans or trial modifications, a HOPE NOW press statement says. Some of these trial modifications will result in formal reporting of modifications after 90 days. As a result, the number of repayment plans increased and the number of modifications decreased from what otherwise might have been recorded. HOPE NOW adds that the number of 60+ day delinquencies was essentially static from March to April, and foreclosure starts dropped by more than 16%. Foreclosure sales, meanwhile, increased, from approximately 53,000 in March to about 65,000 in April. SOURCE: H

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