The nation’s mortgage lenders completed fewer loan modifications in December than in November 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 43,569 homeowners received permanent loan modifications in December, down 1.7 percent from the 44,320 loan modifications completed in November.
The number of completed proprietary loan modifications fell from 31,324 in November to 30,025 in December, a decline of 4.1 percent, while the number of loan modifications made under the federal government’s Home Affordable Modification Program (HAMP) increased from 12,996 in November to 13,544 in December.
Of the proprietary loan modifications completed in December, seventy-three percent (21,862) included reduced monthly principal and interest payments, with sixty-six percent (19,943) receiving a reduction of more than ten percent. In addition, ninety-four percent (28,170) of the loan modifications received fixed interest rate loans of five years or more.
Completed foreclosure sales declined from 41,295 in November to 38,740 in December, a decrease of 6.2 percent.
Monthly foreclosure starts also declined from November to December, falling from 84,238 starts in November to 79,563 in December, a decrease of 5.5 percent.
Short sales posted a slight increase from the previous month as a total of 14,848 short sales were completed in December compared to 14,783 in November.
The average number of homeowners that were at least 60 days or more past due over the previous three months increased from 2.025 million loans in November to 2.031 million in December.
Tags: HOPE NOW, private sector alliance, mortgage servicers, loan modifications, fixed rate mortgages, delinquencies, proprietary modifications, foreclosure starts, foreclosure sales
Reported by Shirley Allen