Mortgage servicers began to ramp up loan modifications in August after a
Nearly 76,000 homeowners received permanent, affordable loan modifications from mortgage servicers in August. This is up from approximately 66,000 in July and 46,400 in June.
The monthly figures include modifications completed under both proprietary programs and the government’s Home Affordable Modification Program.
August loan modifications completed through proprietary programs showed characteristics of sustainability and affordability for homeowners. Out of the 59,459 proprietary loan modifications that were completed for the month, 93% (55,531) included fixed interest rates of five years or more.
Furthermore, proprietary loan modifications with reduced principal and interest monthly payments accounted for 82% of the total, while modifications that had more than 10% reduced principal and interest payments consisted of 71% of the total.
With 75,968 modifications finalized by servicers in August, there have been 5.75 million loan revisions completed over the last five years, Hope Now said.
Additional data the alliance group of mortgage servicers, investors, mortgage insurers and nonprofit counselors said was that 39,559 short sales were completed, serious delinquencies declined month-over-month from 2.47 million to 2.42 million, and 71,149 foreclosure sales were reported in August.
“The cumulative efforts of many different parties have made a significant difference in preventing foreclosures where possible,” said Faith Schwartz, executive director of Hope Now.
