Mortgage servicers reported a pickup in propriety loan modifications as well as foreclosure sales in March.
Members of the Hope Now servicer alliance completed nearly 76,700 proprietary modifications in March, a 26% jump from the previous month.
However, the number of propriety (non-HAMP) modifications fell 26% from the fourth quarter to 209,800 in the first quarter.
“We were pleased to see the increase in proprietary loan modifications from the previous month, despite the challenges facing the industry,” said Faith Schwartz, executive director of the Hope Now Alliance. “This reversed a downward trend in proprietary modifications seen in the previous few months.”
The Hope Now monthly report also suggests the slowdown in foreclosure starts may be ending. Foreclosure starts totaled 217,150 in March, up 21% from the previous month. Starts had declined nearly 9% from the fourth quarter to the first quarter as federal regulators inspected servicing shops for violations of foreclosure processing.
Meanwhile, foreclosure sales jumped 35% from February to 84,500 in March and continue to exert downward pressure on home prices. Hope Now reported that REO sales jumped nearly 18% from fourth quarter to 219,400 in the first quarter.
At the same time, the number of 60-day and more past loans continues to decline, falling 6% from February to March.
