Completed Loan Mods Decline in July

Servicers completed 80,170 loan modifications in July, down from 96,000 in the previous month, as more troubled homeowners participated in 90-day trial modifications as part of the President's foreclosure prevention programs, according to the servicer alliance Hope Now. The number of delinquent borrowers that entered into repayment plans also fell in July. "The good news is that in July, over 253,000 borrowers were helped through loan workout solutions," said Hope Now executive director Faith Schwartz. Treasury Department recently reported that servicers initiated 230,000 trial modifications in July. Treasury is expected to report on the first completed loan modifications under the President's Home Affordable Modification Program this month (September). "It is anticipated that modification numbers will increase in the Hope Now industry surveys in the coming months," the servicer alliance said. Participating HAMP servicers have pledged to complete 500,000 loan modifications by November 1.