HOPE NOW: 100k Permanent Loan Modifications in 2nd Quarter


HOPE NOW reported slightly more than 100,000 permanent loan modifications for homeowners in the second quarter, a 16 percent increase from the first quarter.

HOPE NOW, a voluntary, private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors of which the Mortgage Bankers Association is a founding member, said of those modifications, 69,000 homeowners received proprietary loan modifications and 31,684 homeowners received loan modifications completed under the Home Affordable Modification Program.

The report said 335,000 homeowners received non-foreclosure assistance from mortgage servicers. Other non-foreclosure solutions include modifications, short sales repayment plans, deeds in lieu, other retention plans and liquidation plans. Non-foreclosure actions continued to outpace completed foreclosure sales by a 4-1 margin (335,000 assistance vs. 81,000 foreclosure sales). For every one foreclosure sale, mortgage servicers offered 4.14 solutions. The array of solutions that a servicer is able to provide to an at-risk homeowner allows for the homeowner to avoid a foreclosure sale in most circumstances.

“The Q2-2016 data report confirms the continuous decline of serious delinquency rates across the country,” said HOPE NOW Executive Director Eric Selk. “Markets continue to make recovery from the housing crisis. For those homeowners who still face struggles with affording their mortgage, there are a plethora of options available to them.”

Key metrics from the 2nd Quarter vs. 1st Quarter:
–Serious delinquencies of 60 days or more declined from 1.72 million in the first quarter to 1.54 million in the second quarter, a 10 percent decline.
–Foreclosure sales also decreased from the previous quarter, 81,000 in the second quarter vs. 91,000 in the first quarter, a decrease of 10 percent.
–Foreclosure starts totaled 152,000 in the second quarter, compared to 179,000 in the first quarter, a decrease of 15 percent.

2nd Quarter Metrics from Year Ago
–The 1.54 million serious delinquent homeowners in the second quarter compared to an estimated 1.81 million homeowners a year ago, a 15 percent decline year over year and the lowest total since the inception of HOPE NOW in 2007.
–Assistance for the second quarter totaled 335,000 vs. 380,000 a year ago, a decline of 12 percent.
–Loan mods totaled 100,000 vs. 120,000 a year ago, a decline of 17 percent.
–Foreclosure starts for the second quarter totaled 152,000 vs. 174,000 a year ago, a decrease of 13 percent.
–Foreclosure sales totaled 81,000, compared to 89,000 a year ago, a decline of 9 percent.
–Short sales completed totaled 18,000 vs. 24,000 a year ago, a decrease of 25 percent.
–Deeds in lieu totaled 5,000, a decrease of 6 percent from a year ago (5,300).

June Metrics (from May)
During June, mortgage servicers offered 119,000 total assistance actions, with 42,000 permanent loan modifications completed. Of that total, 26,000 were proprietary loan modifications and 16,007 were completed under HAMP. Total modifications for the month increased 48 percent from May, attributed to a 22 percent increase of proprietary modifications in June, as well as the inclusion of streamline modification data in the HAMP report.

Other key metrics for June:
–Foreclosure sales totaled 29,000 vs. 26,000 in May, an increase of 10 percent.
–Foreclosure starts totaled 54,000 in June vs. 49,000 in May, an increase of 11 percent.
–Short sales completed totaled 6,300 in June vs. 6,000 in May, an increase of 5 percent.

The full data set for Q2 2016 can be found at www.hopenow.com.