Loan modifications totaled 240,000 in the first quarter, up 20% from a year ago, according to the Hope Now servicer alliance.
However, the Amherst Securities Group expects to see a significant drop in
In a new report, the ASG analysts estimate that the number of loan modifications will drop 35% over the next 12 months and 47% over the next 24 months.
Modification activity is likely to decline “due to the smaller nonperforming loan pool, as fewer loans go delinquent for the first time,” the June 11 ASG report says.
“There will also be fewer second modifications, as more first modifications are going to be successful,” the report says.
