Proprietary loan modifications tumbled in June according to HOPE NOW, the voluntary, private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors with completed loan modifications falling by nearly twenty-four percent.
Using a three month rolling average, a total of 61,366 homeowners received permanent loan modifications in June, down 16.4 percent from the 73,431 loan modifications in May.
The number of completed proprietary loan modifications fell from 57,860 in May to 44,043 in June, a decline of 23.9 percent, while the number of loan modifications made under the federal government’s Home Affordable Modification Program (HAMP) increased from 15,571 in May to 17,323 in June.
Of the proprietary loan modifications completed in June, eighty percent (35,298) included reduced monthly principal and interest payments, with 80 percent (35,211) receiving a reduction of more than 10 percent. In addition, ninety-eight percent (43,198) of the loan modifications received fixed interest rate loans of five years or more.
Completed foreclosure sales increased from 47,689 in May to 51,654 in June, an increase of 8.3 percent.
Meanwhile, monthly foreclosure starts fell for the second consecutive month from May to June, declining from 115,452 starts in May to 96,730 in June, a drop of 16.2 percent.
Short sales fell by 7.3 percent from the previous month as a total of 26,104 short sales were completed in June compared to 28,148 in May.
The average number of homeowners that were at least 60 days or more past due over the previous three months fell from 2.231 million loans in May to 2.216 million in June.
Tags: HOPE NOW, private sector alliance, mortgage servicers, loan modifications, fixed rate mortgages, delinquencies, proprietary modifications, foreclosure starts, foreclosure sales
Reported by Shirley Allen