HOPE NOW: Mortgage Industry has Completed More Than 1.5 Million Loan Modifications for Homeowners in 2010

December 8, 2010

Servicers Offered 125K Permanent Mods in Month of October

WASHINGTON, DC – December 8, 2010 – (RealEstateRama) — HOPE NOW, the private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors, released its October 2010 survey data today which estimates the industry completed more than 1.54 million permanent loan modifications for at-risk homeowners from January through October 2010.

That translates to an average of 154,000 homeowners per month who have been able to remain in their homes with an affordable loan modification solution. The reported data for October shows mortgage servicers completed approximately 101,000 proprietary loan modifications for homeowners and 24,000 Home Affordable Modification Program (HAMP) modifications (as reported by US Treasury Department), for an estimated total of 125,000.

Of particular note in October’s data is the effect foreclosure delays and pauses (initiated by some mortgage servicers nationwide) had on the delinquency and foreclosure numbers for the month. Specifically foreclosure starts and sales dropped to 205,000 and 69,000, respectively while the number of homeowners more than 60 days delinquent increased slightly to 3.4 million.

Here are the highlights of the October 2010 monthly data (based on industry estimates):

• Proprietary loan modifications decreased – 117,000 in September compared to 101,000 in October.
• 60+ days delinquencies increased – 3.2 million in September compared to 3.4 million in October.
• Foreclosure starts decreased from 245,000 in September to 205,000 in October.
• Completed foreclosure sales decreased from 118,000 in September to 69,000 in October.
• Loan Modifications outpaced foreclosure sales in October 125,000 to 69,000.

Faith Schwartz, Executive Director of HOPE NOW, issued the following statement:

“There were anomalies in the October data that affected 60 day plus delinquency, as well as foreclosure, metrics which we believe may be largely attributed to widespread foreclosure delays across the country.

Despite these irregularities the mortgage industry’s efforts to keep homeowners in their homes and offer viable mortgage solutions continues to show strong results each month. Far more homeowners are receiving workout solutions — including loan modifications — than are going to foreclosure sale each month. Servicers continue to review processes they have in place and we continue to see an emphasis on foreclosure prevention solutions nationwide. This includes forbearance, HAMP modifications, sustainable proprietary modifications, HAFA, short sales and deeds in lieu of foreclosure.

Unemployment remains a key issue and the industry is working hand in hand with the government and non-profit communities to assist borrowers in the states designated by the Administration for the Hardest Hit Fund. HOPE NOW will continue to work with Federal and local governments to use all homeowner programs at their disposal.

Additionally, the industry has committed considerable resources and has pioneered ground-breaking initiatives, such as HOPE LoanPort™, a web-based loan modification application portal designed to eliminate lost paperwork and reach quicker decisions for homeowners in need. Twelve major mortgage servicers are currently accepting loan modification applications via HOPE LoanPort™, and three more are expected to be online soon. The portal is also used by more than 1,700 housing counselors in 47 states, the District of Columbia and Puerto Rico, and supported by state housing finance agencies in Arizona, Maryland, Nevada and Ohio.”

HOPE NOW is the industry-created alliance of mortgage servicers, investors, counselors, and other mortgage market participants, brought together by the Financial Services Roundtable, Housing Policy Council and Mortgage Bankers Association, that has developed and is implementing a coordinated plan to help as many homeowners as possible prevent foreclosure and stay in their homes. For more information go to www.HopeNow.com or call the free Homeowner’s HOPE™ Hotline at (888) 995-HOPE™. More info…

The following companies are members of the HOPE NOW Alliance:

Acqura Loan Services
American Home Mortgage Servicing, Inc.
Assurant, Inc.
Aurora Loan Services
Bank of America
Bayview Financial
Carrington Mortgage Services, LLC
Citigroup, Inc.
Fannie Mae
Freddie Mac
First Horizon Home Loans
Genworth Mortgage Insurance Corporation
GMAC
HSBC USA
JPMorgan Chase
Lender Business Process Services, Inc.
Litton Loan Servicing
LoanCare
Marathon Asset Management
MetLife Home Loans
MGIC
Mortgage Electronic Registration System
Nationstar Mortgage LLC
Ocwen Loan Servicing
OneWest Bank
PMI Mortgage Insurance Company
PNC Mortgage
Quicken Loans
Radian
Residential Credit Solutions
RoundPoint Financial Group
Saxon Mortgage Services/ Morgan Stanley
Select Portfolio Servicing, Inc.
State Farm Insurance
SunTrust Mortgage, Inc.
Vericrest Financial
Wells Fargo and Company