MBA: Servicers Modified 54K Loans in Q3

The mortgage industry modified an estimated 54,000 home loans and established formal repayment plans involving another 183,000 borrowers during the third quarter, according to an analysis by the Mortgage Bankers Association. The MBA also estimates that foreclosure actions were started on 384,000 loans in the third quarter, though the MBA said that 63% of the foreclosure starts involved non-owner-occupied homes, borrowers who failed to respond to servicers' efforts to contact them, or borrowers who failed to perform on a repayment plan or loan modification that was already in place. Jay Brinkman, the MBA's vice president of research, said the number of loan modifications and repayment plans is likely to grow because of the industry's efforts to reach out to borrowers with subprime adjustable-rate mortgage loans. The MBA estimates are based on responses from servicers covering about 33 million home loans, or 62% of the total market. The MBA can be found online at http://www.mortgagebankers.org.