Nearly 62 percent of the approximately 952,000 homeowners who are 90 days delinquent on their mortgage loans but not in foreclosure have been through a home retention program such as a trial or permanent loan modification or a repayment plan, according to Black Knight Financial Services' April 2015 Mortgage Monitor released today. While home retention actions have declined by 42 percent over the last two years, the share of home retention actions as a percentage of seriously delinquent inventory has increased by 9 percent during that same time frame.
About 70 percent of all new trial mod and repayment programs have previously been through one or more home retention actions, indicating a redundancy in retention actions. The percentage of repeat trial mods and repayment plans was only 45 percent four years ago in 2011, right after the height of the foreclosure wave. In Q1 2015, about 15 percent of seriously delinquent mortgage loans participated in a home retention program each month, while nearly 20 percent of serious delinquent borrowers were actively in an active trial mod or repayment plan at the end of April.
The Bureau of Labor Statistics on Friday reported job gains of 280,000 in May, which is nearly 30 thousand higher than the previous 12-month average of 251,000. With 1 million jobs added in the last year among the millennial demographic, Realtor.com chief economist Jonathan Smoke said that is positive for housing, saying, "As that group’s economic situation continues to improve, their housing activity follows and has a material impact on both existing and new home sales. With more jobs, more people in the labor force, and higher wages materializing, this spring’s strong pace for home sales will continue."