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Mortgage News Daily combines the expertise of some of the housing industry's leading minds with the power of social media to offer an always lively, constantly evolving web community. MND communicates breaking news, streams video, and provides expert opinion and commentary to a community of interested market professionals and curious consumers.HAMP on Track to Reach Goals. No Update On Redefault Rate
The Treasury Department announced Tuesday morning that its Making Home
Affordable Program (HAMP) now has more than 650,000 mortgage modifications
underway, a number that puts it on track to meet its goals over the next few
years.
The report, which provides data on the program through October 31, is
the first to provide state specific numbers on program participation.
The numbers of trial modifications processed through the program has
increased dramatically each month since the program's inception early last
spring. At the end of May only 50,130
borrowers were in the program; by the end of September the total was 487,081
and at the end of last month there were 650,994 loans in process.
Slightly more than 900,000 borrowers have been offered trial plans
compared to 758,000 last month and servicers have sent out 2,777,000 requests
for financial information to eligible borrowers.
While the number of borrowers the program is helping has dramatically increased over recent months, the effectiveness of the program is dependent upon the ability of borrowers to maintain a stable payment history after their loan is modified. Unfortunately the Treasury has yet to provide an update on the re-default rate amongst trial modifications.
Every state in the union has borrowers participating in the program
with the most activity, as might be expected, in those states which experienced
the greatest run-up in both home sales and in prices during the boom and
subsequently have suffered the most foreclosures. California leads the list with 134,609
modifications in process followed by Florida with 82,614, Arizona (34,424),
Illinois (33,514) and New York (27,773).
The report did not give a state by state breakdown of modifications as a
percent of eligible loans which would have been a more meaningful figure than
the raw number.
The number of servicers now participating in the program has reached
71. These servicers cover 85 percent of HAMP
eligible mortgage debt in the country.
Participating servicers oversee loans owned or guaranteed by Fannie Mae
or Freddie Mac, loans held in portfolio, or loans serviced by other investors.
In addition to the 71 servicers mentioned above, another 2,300 lenders
service loans owned or guaranteed by Fannie Mae or Freddie Mac. These servicers are automatically eligible to
participate in the program.
During October Saxon Mortgage Services had the highest percentage of
its 60-day delinquencies in the modification program, 44 percent. Citibank was second with 40 percent of
eligible borrowers participating.
HAMP has a goal of placing three to four million homeowners into a
modification program over three years.
Incentives are offered to servicers for implementing the program which employes
several different mechanisms for lowering mortgage payments to not more than 31
percent of the borrower's monthly income
In releasing the report Treasury Assistant Secretary
Michael S. Barr said "As this report demonstrates, struggling homeowners in
every state now benefit from reduced monthly mortgage payments and have an
opportunity to stay in their homes. The
program is having a pronounced impact in areas particularly hard hit by the
housing crisis. We're reaching borrowers
at a larger scale than any other modification program to date, but there is
still much more work to bedone.
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HAMP on Track to Reach Goals. No Update On Redefault Rate
The Treasury Department announced Tuesday morning that its Making Home
Affordable Program (HAMP) now has more than 650,000 mortgage modifications
underway, a number that puts it on track to meet its goals over the next few
years.
The report, which provides data on the program through October 31, is
the first to provide state specific numbers on program participation.
The numbers of trial modifications processed through the program has
increased dramatically each month since the program's inception early last
spring. At the end of May only 50,130
borrowers were in the program; by the end of September the total was 487,081
and at the end of last month there were 650,994 loans in process.
Slightly more than 900,000 borrowers have been offered trial plans
compared to 758,000 last month and servicers have sent out 2,777,000 requests
for financial information to eligible borrowers.
While the number of borrowers the program is helping has dramatically increased over recent months, the effectiveness of the program is dependent upon the ability of borrowers to maintain a stable payment history after their loan is modified. Unfortunately the Treasury has yet to provide an update on the re-default rate amongst trial modifications.
Every state in the union has borrowers participating in the program
with the most activity, as might be expected, in those states which experienced
the greatest run-up in both home sales and in prices during the boom and
subsequently have suffered the most foreclosures. California leads the list with 134,609
modifications in process followed by Florida with 82,614, Arizona (34,424),
Illinois (33,514) and New York (27,773).
The report did not give a state by state breakdown of modifications as a
percent of eligible loans which would have been a more meaningful figure than
the raw number.
The number of servicers now participating in the program has reached
71. These servicers cover 85 percent of HAMP
eligible mortgage debt in the country.
Participating servicers oversee loans owned or guaranteed by Fannie Mae
or Freddie Mac, loans held in portfolio, or loans serviced by other investors.
In addition to the 71 servicers mentioned above, another 2,300 lenders
service loans owned or guaranteed by Fannie Mae or Freddie Mac. These servicers are automatically eligible to
participate in the program.
During October Saxon Mortgage Services had the highest percentage of
its 60-day delinquencies in the modification program, 44 percent. Citibank was second with 40 percent of
eligible borrowers participating.
HAMP has a goal of placing three to four million homeowners into a
modification program over three years.
Incentives are offered to servicers for implementing the program which employes
several different mechanisms for lowering mortgage payments to not more than 31
percent of the borrower's monthly income
In releasing the report Treasury Assistant Secretary
Michael S. Barr said "As this report demonstrates, struggling homeowners in
every state now benefit from reduced monthly mortgage payments and have an
opportunity to stay in their homes. The
program is having a pronounced impact in areas particularly hard hit by the
housing crisis. We're reaching borrowers
at a larger scale than any other modification program to date, but there is
still much more work to bedone.
If you would like to opt-out of receiving email forwards from this person please click here to remove your email address.