HOPE NOW: 122K Mortgage Modifications in July

HOPE NOW this week reported its members completed 122,000 non-foreclosure actions in July, compared to 29,000 completed foreclosures.  

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 non-foreclosure actions included loan modifications, short sales, deeds in lieu and workout plans.  

The 122,000 non-foreclosure actions in July and 29,000 foreclosure actions compared to 157,000 and 39,500, respectively, from a year ago.  The July figures include an estimated 33,000 permanent loan modifications. This total includes modifications completed under both proprietary programs and the government’s Home Affordable Modification Program. Of permanent loan modifications completed in the month of July, an 23,000 were through proprietary programs and 9,734 were completed via HAMP. Of the 23,000 proprietary modifications completed in July, 66 percent (15,450) reduced the monthly principal and interest payment by 10 percent or more.  

Since HOPE NOW began reporting data in 2007, non-foreclosure actions totaled more than 24 million; the number of permanent loan modifications totaled 7.5 million.  

“It is clear that servicers continue to work with customers to offer the best options–whether they are permanent, short term or liquidation,” said HOPE NOW Executive Director Eric Selk. “Looking at the year over year comparison, it is notable that the decline in foreclosure sales is more than double the decline in permanent loan mods. Additionally, it’s important to note that decisions are often driven by the customers’ requests. For example, if a customer wants to keep their home, there are many options beyond a traditional HAMP modification.”    

Key Metrics: July vs. June

–Loan Modifications: 33,000 completed in July vs. 34,000 in June, a decrease of 3 percent.

–Short sales: 8,100 completed in July vs. 8,200 in June, a slight decrease.

–Deed in-lieu: 1,600 completed in July vs. 1,800 in June, a decrease of 11 percent.

–Foreclosure starts: 53,000 in July vs. 58,000 in June, a decrease of 9 percent.–Foreclosure sales: 29,000 in July vs. 30,000 in June, a decrease of 3 percent.–Serious delinquencies: 1.69 million in July vs. 1.72 million in June, a decrease of 17 percent.  

Key Metrics: July vs. a Year Ago

–Loan Modifications: 33,000 completed vs. 38,000 in July 2014, a decrease of 12 percent.

–Short sales: 8,100 completed in July vs. 8,200 in July 2014, a decrease of 29 percent.

–Deed in-lieu: 1,600 completed in July vs. 2,500 in July 2014, a decrease of 26 percent.

–Foreclosure starts: 53,000 in July vs. 71,000 in July 2014, a decrease of 25 percent.

–Foreclosure sales: 29,000 in July vs. 40,000 in July 2014, a decrease of 26 percent.

–Serious delinquencies:1.69 million in July vs. 1.93 million in July 2014, a decrease of 13 percent.  

The full data set for July is available at www.hopenow.com.