Mortgage Mods Slip Below 100K Mark for First Time in Over a Year

Mortgage servicers had been completing over 100,000 loan modifications per month since late 2009, but that streak came to an end in February.
[IMAGE] ""HOPE NOW"":http://www.hopenow.com reports that 87,083 homeowners received permanent loan modifications during the month of February. That's about 14 percent fewer than the previous month and the first time the organization's modification tally has fallen below the 100K mark in nearly a year and a half.

The industry group's data for February shows that, for the month, mortgage servicers completed approximately 61,936 proprietary loan modifications through their own programs, and 26,147 through the government's Home Affordable Modification Program (HAMP).

Both proprietary and government mods slipped during the month. In January, the breakdown was 73,005 and 27,957, respectively.

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HOPE NOW says, though, that the work done by servicers is resulting in more sustainable loans for homeowners.

Of the proprietary modifications completed in February, approximately 81 percent (49,000) included reduced monthly principal and interest payments.

Additionally, proprietary loan modifications that reduced principal and interest payments by more than 10 percent represented 59 percent (36,000) of the monthly total.

""Despite the numerous issues surrounding the loan servicing industry which have caused some delays in process, servicers and non-profit housing counselors continue to make progress in reaching at-risk homeowners, counseling at-risk homeowners, and offering alternatives to families facing foreclosure,"" said Faith Schwartz, executive director of HOPE NOW.

""While we have seen a decline in overall modifications, we are pleased to see the serious delinquencies once again declined in the month of February, consistent with a trend we have seen in earlier months,"" Schwartz added.

According to HOPE NOW's report, 60-plus day delinquencies fell to 2.78 million in February, down from 2.95 million for January.

Foreclosure starts also declined â€" 180,000 in February, compared to 204,000 in January.

Completed foreclosure sales for the month were approximately 73,000, which was essentially unchanged from January 2011.