August 15, 2012 (Shirley Allen)
Total completed loan modifications increased in June as a rise in proprietary loan modifications more than made up for a drop in HAMP loan modifications according to HOPE NOW, the voluntary, private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors.
Using a three month rolling average, a total of 46,402 homeowners received permanent, proprietary loan modifications in June, up 5.7 percent from a revised 43,899 loan modifications in May.
Of the proprietary loan modifications completed in June, 80 percent (36,955) included reduced monthly principal and interest payments, with 71 percent (32,939) receiving a reduction of more than 10 percent. In addition, 91 percent (42,198) of the loan modifications received fixed interest rate loans of five years or more.
Loan modifications under the federal government’s HAMP program fell slightly from May to June with government agencies completing 17,192 loan modifications in June compared to 17,590 in May.
Short sales also saw their numbers decline as a total of 36,535 short sales were completed in June compared to a revised 37,409 in May.
Monthly foreclosure starts fell substantially during June following May’s 14.8 percent jump. Foreclosure starts declined 20.6 percent from May, falling from 198,944 to 157,920.
Completed foreclosure sales increased slightly, edging up from 63,530 in May to 64,236 in June.
The number of homeowners that were at least 60 days or more past due also continued to climb, increasing from 2.465 million loans in May to 2.531 million in June.
Tags: HOPE NOW, private sector alliance, mortgage servicers, loan modifications, fixed rate mortgages, delinquencies, proprietary modifications, foreclosure starts, foreclosure sales