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Mortgage Modifications Drop; Mod Defaults to Rise
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Mortgage Modifications Drop; Mod Defaults to Rise
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
The Easy Way to Shop For a Mortgage Loan
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Receive Multiple Offers. Save Money.
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Mortgage Modifications Drop; Mod Defaults to Rise
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February 8, 2011 (Chris Moore)
mortgage-modification-image
Credit rating agency Fitch Ratings reported that mortgage servicers modified 36,500 mortgages through government and proprietary programs in December 2010, down 57% from the peak of 86,500 in April 2009. Fitch also stated that based on current and expected inventory, it will take four years to remove the backlog of properties and return the market to balance, echoing a similar statement made by Standard & Poor last week.

While efforts by both Hope Now and HAMP resulted in about 1.75 million modifications in 2010, Fitch’s report claims the amount of modifications has been on the decline each month since the April 2009 peak.

And yet despite the efforts by both Hope Now and HAMP, foreclosure sales still exceeded the one million mark with that number expected to increase in 2011.

Adding to the misery, Fitch is also projecting that between 60 percent and 70 percent of sub-prime loans modified will re-default within a year. Prime loans won’t fare much better. More than half of these mortgages are expected to re-default in one year after modification as well.

“The combined efforts of HAMP and other mortgage loan modification programs have made little more than a dent in the large volume of outstanding distressed loans,” said Diane Pendley, Head of U.S. RMBS Operational Risk, in a release.

But the amount of short sales and deeds in lieu of foreclosure could be on the rise. Fitch looked into the amount of loans that were liquidated as of December 2010 and found that 53 percent of prime loans, 34 percent of Alt-A and 32 percent of sub-prime sales were conducted before reaching the REO, or repossessed stage.

Less loan modifications, increased existing mortgage loan modification default rates, and an expected record year in foreclosures makes us wonder if four years is long enough.

Tags: mortgage servicers, mortgage loans, fitch ratings, mortgages, distressed properties, loan modifications, hamp, hope now, short sales, reo

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Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
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Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
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Rates

February 8, 2011 (Chris Moore)
mortgage-modification-image
Credit rating agency Fitch Ratings reported that mortgage servicers modified 36,500 mortgages through government and proprietary programs in December 2010, down 57% from the peak of 86,500 in April 2009. Fitch also stated that based on current and expected inventory, it will take four years to remove the backlog of properties and return the market to balance, echoing a similar statement made by Standard & Poor last week.

While efforts by both Hope Now and HAMP resulted in about 1.75 million modifications in 2010, Fitch’s report claims the amount of modifications has been on the decline each month since the April 2009 peak.

And yet despite the efforts by both Hope Now and HAMP, foreclosure sales still exceeded the one million mark with that number expected to increase in 2011.

Adding to the misery, Fitch is also projecting that between 60 percent and 70 percent of sub-prime loans modified will re-default within a year. Prime loans won’t fare much better. More than half of these mortgages are expected to re-default in one year after modification as well.

“The combined efforts of HAMP and other mortgage loan modification programs have made little more than a dent in the large volume of outstanding distressed loans,” said Diane Pendley, Head of U.S. RMBS Operational Risk, in a release.

But the amount of short sales and deeds in lieu of foreclosure could be on the rise. Fitch looked into the amount of loans that were liquidated as of December 2010 and found that 53 percent of prime loans, 34 percent of Alt-A and 32 percent of sub-prime sales were conducted before reaching the REO, or repossessed stage.

Less loan modifications, increased existing mortgage loan modification default rates, and an expected record year in foreclosures makes us wonder if four years is long enough.

Tags: mortgage servicers, mortgage loans, fitch ratings, mortgages, distressed properties, loan modifications, hamp, hope now, short sales, reo

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
HOW
MORTGAGELOANRATEUPDATE
WORKS
Whether you're looking to refinance your current loan, purchasing a new home or looking for a home equity loan, we make it easy at MortgageLoanRateUpdate. Our questionnaire is simple and quick to use and your information is safely transmitted to us with SSL encryption. With just two minutes of your time, you could have multiple lenders competing for your business which could save you thousands.
ADVANTAGES OF USING
MORTGAGELOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.

February 8, 2011 (Chris Moore)
mortgage-modification-image
Credit rating agency Fitch Ratings reported that mortgage servicers modified 36,500 mortgages through government and proprietary programs in December 2010, down 57% from the peak of 86,500 in April 2009. Fitch also stated that based on current and expected inventory, it will take four years to remove the backlog of properties and return the market to balance, echoing a similar statement made by Standard & Poor last week.

While efforts by both Hope Now and HAMP resulted in about 1.75 million modifications in 2010, Fitch’s report claims the amount of modifications has been on the decline each month since the April 2009 peak.

And yet despite the efforts by both Hope Now and HAMP, foreclosure sales still exceeded the one million mark with that number expected to increase in 2011.

Adding to the misery, Fitch is also projecting that between 60 percent and 70 percent of sub-prime loans modified will re-default within a year. Prime loans won’t fare much better. More than half of these mortgages are expected to re-default in one year after modification as well.

“The combined efforts of HAMP and other mortgage loan modification programs have made little more than a dent in the large volume of outstanding distressed loans,” said Diane Pendley, Head of U.S. RMBS Operational Risk, in a release.

But the amount of short sales and deeds in lieu of foreclosure could be on the rise. Fitch looked into the amount of loans that were liquidated as of December 2010 and found that 53 percent of prime loans, 34 percent of Alt-A and 32 percent of sub-prime sales were conducted before reaching the REO, or repossessed stage.

Less loan modifications, increased existing mortgage loan modification default rates, and an expected record year in foreclosures makes us wonder if four years is long enough.

Tags: mortgage servicers, mortgage loans, fitch ratings, mortgages, distressed properties, loan modifications, hamp, hope now, short sales, reo

Home Buying Tips
Home Selling Tips
About
Mortgages
HOW
MORTGAGELOANRATEUPDATE
WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at MortgageLoanRateUpdate and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
MORTGAGELOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.