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HOPE NOW: July Loan Mods at 63,000

MBA Staff
HOPE NOW said an estimated 63,000 homeowners received permanent, affordable loan modifications from mortgage servicers, bringing the year’s total to 519,000.

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 total loan modifications rose to 6.6 million since 2007. The total includes 5.36 million proprietary loan modifications and 1.236 million Home Affordable Modification Program modifications.

For July, HOPE NOW said 50,000 homeowners received proprietary loan modifications, while 13,183 homeowners received HAMP modifications.

The report said foreclosures have dropped overall; through the first seven months of the year, HOPE NOW reported 378,000 foreclosure sales, compared to 458,000 during the same period a year ago. For July, however, HOPE NOW reported 59,000 foreclosure sales completed, compared to 52,000 completed in June, an increase of 14 percent. Foreclosure starts rose as well, with 102,000 recorded in July compared to 98,000 in June, an increase of 5 percent.

The report said short sales totaled 26,000 in July, the same as June. Since HOPE NOW began tracking short sale data in 2009, 1.32 million short sales have been completed. Delinquencies of 60 days or more rose to 2.24 million for July, compared to 2.21 million in June, an increase of 1 percent.

HOPE NOW said proprietary loan modifications that included fixed interest rates of five years or more accounted for 99 percent (50,000) of the total; modifications with reduced principal and interest monthly payments accounted for 82 percent (41,000); and modifications with reduced principal and interest payments of more than 10 percent accounted for 81 percent (40,000).

The full data set for July 2013 is available at

“Data shows a consistent trend, month over month, pointing toward market stabilization, said HOPE NOW Executive Director Erik Selk. “Loan modifications and short sales continue to outpace foreclosure sales…while progress is being made in the housing market, there is still a need for aggressive outreach and education by mortgage servicers, government agencies, non-profits and local groups to at-risk homeowners.”