HOPE NOW Reports Largest Ever Monthly Mods

In April 2009 HOPE NOW members and the industry at large modified 127,000 mortgages and completed 143,000 repayment plans totaling 270,000 interventions, "the largest number in any month" since the alliance started to compile data. The foreclosure prevention alliance of mortgage servicers, non-profit counselors, and investors said however that the data should be analyzed keeping in mind the difference between modifications and pre-modifications within the context of the Home Affordable Modification Program. For example, the increase in payment plans compared to March -reflects the HAMP requirement that loans are subject to a three-month-trial period before a modification can be completed. Meanwhile these loans are often reported as repayment plans or trial modifications that later are reported as modifications, often after 90 days. Furthermore April data show the number of 60+ days delinquencies was the same in April as in March at just under 3 million. Also, foreclosure starts dropped by more than 16% from 290,000 in March to 249,000 in April, meanwhile foreclosure sales increased, from 53,000 in March to 65,000 in April. According to HOPE NOW executive director Faith Schwartz, as HAMP continues to be implemented going forward many alliance members see it an opportunity to assist a progressively larger number of homeowners in trouble.