Servicers provided nearly 503,000 loan workouts for homeowners in the first quarter, bringing to nearly 1.4 million the total number of workouts since the Hope Now alliance was created last July. Of the 502,500 prime and subprime loan workouts that servicers provided to homeowners during the first quarter, about 323,000 were repayment plans and 179,500 were loan modifications. The Hope Now alliance said that among subprime mortgage loans, loan modifications accounted for 44% of workouts in the first quarter, double the 2007 rate. Some consumer advocates say that modifications, in which loan terms are changed, are a better long-term solution than repayment plans that attempt to bring a borrower current over a shorter-term period.
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