HAMP Activity Slides, HAFA Holds Steady

The government's Home Affordable Modification Program (HAMP) continues to add borrowers to its roster each month, but the pace has slowed.

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Data released Friday by ""Treasury"":http://www.treasury.gov and ""HUD"":http://www.hud.gov shows 19,940 permanent HAMP mods were granted during the month of March. That's down 10 percent from the 22,263 permanent mods completed in February and down 45 percent from 36,432 in March 2011.

Raphael Bostic, HUD assistant secretary, says fewer borrowers are falling behind on their mortgage these days. ""We're making important progress in providing relief to homeowners under the Obama administration's programs,"" Bostic said.

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As of the end of March, there were 794,748 borrowers in active permanent HAMP modifications, and 76,218 of these also had payments reduced on a second lien or the lien extinguished entirely through the Second Lien Modification Program (2MP) of the government's mortgage relief effort.

Bostic notes that in addition to HAMP modifications, homeowners are finding relief under the Home Affordable Refinance Program (HARP). Nearly half a million families have taken advantage of HARP, standing to save on average $2,500 a year, Bostic explained.

Though he described these efforts as providing ""significant positive benefits,"" Bostic followed that with an appeal to lawmakers to help improve program results. ""[W]e are asking the Congress to approve the President's refinancing proposal so that more homeowners can receive assistance,"" he said.

While HAMP activity has slowed, other government-assisted foreclosure alternatives have held fairly steady. During March 2012, 4,486 homeowners received a short sale or deed-in-lieu of foreclosure through the Home Affordable Foreclosure Alternatives Program (HAFA).

There were 4,340 HAFA deals put in place the month before and 5,447 a year earlier in March 2011. To date, servicers have completed a total of 40,252 HAFA transactions.