Loan modifications completed through the government's Home Affordable Mortgage Program have historically re-defaulted at a lower rate than proprietary loan modifications, but HAMP mods facilitated in 2014 began re-defaulting at a higher rate than those modified in the two previous years, according to Black Knight Financial Services' November 2014 Mortgage Monitor released on Monday. Even though overall loan mod volume is down, the percentage of HAMP mods that make up all loan mod activity has been steadily increasing – for November 2014, it was slightly above 50 percent.
Black Knight's study revealed that HAMP mods facilitated in 2014 were re-defaulting at higher rates than those modified in 2012 and 2013. About 9 percent of all HAMP mods completed in 2014 were delinquent after eight post-mod payments, compared with delinquency rates of 6 and 5 percent after eight post-mod payments for HAMP mods completed in 2012 and 2013, respectively. In 2014, about 72 percent of HAMP loan mods were on FHA or VA loans, up from just 16 percent a year earlier.
Americans' housing attitudes were mixed in the New York Federal Reserve's year-end Survey of Consumer Expectations released Monday. Looking at the year ahead, the median home price change expectation was 3.6 percent in December, down from the 2014 average of 3.85 percent. On the other hand, respondents were more optimistic about their chances of getting a loan. Compared to a year ago, 23 percent of Americans said credit is more available, an improvement from November. By this time next year, 24 percent expect credit to be at least slightly easier to obtain.