HOPE NOW: Mortgage Industry Completed 210K Proprietary Loan Mods for Homeowners in 1Q 2011

77K Proprietary Mods Reported in Month of March

WASHINGTON, DC – May 4, 2011 – (RealEstateRama) — HOPE NOW, the voluntary, private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors, released its March 2011 loan modification data, which shows that an estimated 210,000 homeowners received permanent, proprietary loan modifications from mortgage servicers for the first quarter of 2011. This estimate does not include loan modifications through Home Affordable Modification Program (HAMP), and industry totals will be updated once official government reports are published.

Of the proprietary modifications completed in the first quarter of 2011, approximately 81% (170,000) included reduced monthly principal and interest payments. Additionally, proprietary loan modifications that reduced principal and interest payments by more than 10% represented 57% (120,000) of the quarterly total.

Here are some of the highlights of the March/Quarterly 2011 data:

• In the first quarter 2011, 264,000 total modifications have been completed. This includes 210,000 proprietary modifications through March, and 54,000 HAMP modifications for January and February (Making Home Affordable “HAMP” numbers for March not reported in this report).
• Proprietary modifications for the month were approximately 77,000, up from 61,000 in February – an increase of 26%.
• Loan modifications with reduced principal and interest payments accounted for approximately 81% (62,000) of all proprietary modifications.
• Loan modifications with reduced principal and interest payments by 10% or greater accounted for approximately 52% (40,000) of all proprietary modifications.
• Fixed-rate modifications (initial fixed period of 5 years or more) accounted for 76% (58,000) of all proprietary modifications.
• Foreclosure starts for the month were 217,000, up from the 180,000 reported for February 2011 – an increase of 21%.
• Completed foreclosure sales for the month were approximately 85,000, up from the 62,000 from February 2011 – an increase of 35%.
• 60+ days delinquencies for the month were 2.63 million, down from the 2.78 million reported in February 2011 – a decrease of 6%.

Faith Schwartz, Executive Director, issued this statement:

“We were pleased to see the increase in proprietary loan modifications from the previous month, despite the challenges facing the industry. This reversed a downward trend in proprietary modifications seen in the previous few months. While it’s encouraging to see a continued decline in 60 day delinquency we realize many homeowners continue to be at risk of foreclosure, as evidenced by the increase in foreclosure sales in March. Homeowners need the ongoing focus and support of loan servicers and non-profit housing counselors as they continue to move through the resolution process. This includes explaining all options, which may include a short sale or deed-in-lieu of foreclosure.

HOPE NOW and its partners remain committed to ramping up their efforts to reach struggling families and working together to use all tools at their disposal, including aggressive local and regional outreach and leading-edge technology, such as HOPE LoanPort® to help these families find alternatives to foreclosure.”

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™.

###

Media Contacts:
Brad Dwin
(410) 303-6391

Faith Schwartz
(202) 589-2406