HAMP Modifications Slump 50% During 2012
The number of HAMP modifications slumped by nearly 50% in 2012, compared to the year prior, as mortgage servicers concentrated on completing proprietary loan modifications.
The new data provided by the Hope Now alliance show that servicers completed 188,670 mods based on the Treasury Department’s Home Affordable Modification Program specifications, down 47% from a year ago.
The same servicers completed 661,363 proprietary modifications, in 2012, down just 3% from a year ago.
Overall, the servicers completed 1.05 million modifications in 2012, down 19% from 2011.
The new December Hope Now report also shows that servicers completed 422,600 short sales in 2012, up nearly14% from the previous year.
“For the year, almost $1.3 million people received a permanent alternative—via loan modification or short sale,” said Hope Now executive director Eric Selk.
Meanwhile, foreclosure starts totaled 1.92 million in 2012, down 15% from 2011, and foreclosure sales declined 7% to nearly 779,200.