HOPE NOW: 1.45 Million Servicing Assistance Actions in 2015

HOPE NOW reported its member companies offered nearly 1.5 million foreclosure alternatives in 2015, including 420,000 completed permanent loan modifications.

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, released its final 2015 loan modification data report, showing 1.45 million homeowners received a foreclosure alternative, including loan modifications, short sales, deeds in lieu and other workout plans.

The total included 420,000 permanent loan modifications. Of the total number of loan modifications, 302,000 were proprietary and 117,267 were completed under the Home Affordable Modification Program.

HOPE NOW reported since 2007, the mortgage industry completed more than 24 million non-foreclosure actions for homeowners. This includes more than 7.75 million permanent loan modifications, of which 6.2 million were completed through proprietary programs and 1.56 million were through HAMP.

The report said foreclosure starts and completed foreclosure sales both declined significantly compared to 2014. HOPE NOW reported 705,000 foreclosure starts in 2015, compared to 842,000 in 2014, a decline of 16 percent. Completed foreclosure sales fell to 342,000 in 2015, compared to 455,000 in 2014, a decline of 25 percent.

HOPE NOW said serious delinquencies also declined in 2015, continuing a three-year trend. It reported 1.6 million loans that were 60+ days delinquent, compared to 1.9 million serious delinquencies in 2014, a decline of nearly 16 percent.

HOPE NOW also reported 86,000 short sales completed in 2015, bringing the total since 2009 to 1.65 million. Deeds in lieu for the year totaled nearly 20,000 for 2015, bringing the life to date total to 146,000.
Other report highlights:

–Loan mods completed decreased from 489,000 in 2014 to 419,000 in 2015, a decline of 14 percent.
–Foreclosure starts decreased from 842,000 in 2014 to 705,000 in 2015, a decline of more than 16 percent.
–Foreclosure sales decreased from 455,000 in 2014 to 342,000 in 2015, a decline of 25 percent.
–Loan mods completed decreased from 98,000 in the third quarter to 85,000 in the fourth quarter, a decline of 13 percent.
–Foreclosure starts decreased from 159,000 in the third quarter to 156,000 in the fourth quarter, a slight decline of 2 percent.
–Foreclosure sales decreased from 80,000 in the third quarter to 77,000 in the fourth quarter, a decline of 4 percent.
–Loan mods completed increased from 26,000 in November to 29,000 in December, an increase of 12 percent.
–Foreclosure sales increased from 24,000 in November to 24,500 in December, a slight increase of 2 percent.
–Foreclosure starts increased from 46,000 in November to 54,000 in December, an increase of 17 percent.
–Serious delinquencies of 60 days or more remained unchanged in December at 1.62 million.

The full data set for 2015 is available at www.hopenow.com.

“[This] affirms the recent trends in housing market recovery,” said HOPE NOW Executive Director Eric Selk. “Delinquency and foreclosure data continues to decrease and approach pre-crisis norms.”

Selk noted just six years ago, the industry reached the apex of the foreclosure crisis with more than 4.1 million homeowners in serious delinquency. “Today, we are at 1.6 million,” he said. “This is a true testament to the recovery and all the hard work that HOPE NOW members have maintained to assist those in need.”