Proprietary Modifications Slow, HAMP Steady

Mortgage & Real Estate

Mortgage servicers slowed the pace of proprietary loan modifications in the second quarter while HAMP loan restructurings remained steady.

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Figures compiled by the Hope Now alliance found that servicers completed 165,100 proprietary modifications in the second quarter, down 21% from the prior period.

At the same time, servicers completed 92,900 modifications that meet the government’s Home Affordable Modification Program requirements, a nearly 3% improvement from 1Q.  

Struggling borrowers generally receive more mortgage payment relief via a HAMP modification than a proprietary one. 

The Hope Now report points out that the number of delinquent loans (60 days or more past due) declined 27% over the past year.

Roughly 2.7 million loans were delinquent as of June 30, compared to 3.7 million a year ago.

Foreclosure sales in the first-half of this year totaled 432,000, down 25% from the same six-month period in 2010.  

In addition, foreclosure starts declined nearly 10%, according to Faith Schwartz, Executive Director of the Hope Now servicer alliance.

“There were one million less delinquent homeowners in the first-half of 2011 than there were for the same time period last year. The decrease in delinquencies combined with the drop in foreclosure starts and sales shows that more homeowners are getting assistance through the many options available to them,” she said.

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