Re-default rates on HAMP modified loans are half the rate of other permanent modifications, according to second quarter servicing figures complied by the Office the Comptroller of the Currency and Office of Thrift Supervision.
The OCC/OTS Mortgage Metrics Report shows that the Home Affordable Modification Program's track record is better than proprietary modifications completed through the first quarter of 2010.
"At six months after modification, 10.8% of HAMP modifications were 60-days or more delinquent compared to 22.4% for other modifications," the regulators said.
The regulators also point that each new batch of quarterly modifications appears to perform better as a larger percentage of the mods stress reductions in monthly payments by 20% or more.
OCC and OTS collect the data from 12 of the largest bank and thrift servicers.
Since the advent of the HAMP program in the summer of 2009, these servicers have completed twice as many proprietary modifications as HAMP restructurings.
The OCC/OTS report says the servicers completed 273,400 modifications in the second quarter — an 18% increase over the previous quarter. However, number of borrowers entering trial payment plans "decreased significantly."
Meanwhile, number of completed foreclosures, short sales and deeds-in-lieu of foreclosure increased 14% from the first to the second quarter and 67% from a year ago.
Short sales in the second quarter totaled nearly 57,000, up 42% quarter over quarter and 127% from a year ago.
