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As recent data provide reasons to be both positive and worried about the economy, restrained optimism seems to be the phrase to describe how the public should respond to current economic indicators.
[IMAGE]Wednesday's ""release of the Beige Book"":http://dsnews.comarticles/beige-book-cites-modest-to-moderate-growth-with-guarded-optimism-2012-06-06 revealed economic outlooks remain positive, but contacts were slightly more guarded in their optimism, while the Obama administration's ""Housing Scorecard"":http://portal.hud.gov/hudportal/HUD?src=/initiatives/Housing_Scorecard relayed a similar sentiment.
""Market data show promise as indicators continue to show signs of stability, though officials caution that the overall outlook remains mixed,"" according to scorecard, jointly released by ""HUD"":http://portal.hud.gov/hudportal/HUD and ""Treasury"":http://www.treasury.gov/Pages/default.aspx.
The scorecard provides an overview of the state of the market based on reports published within the public and private sectors.
Based on recently released data, the scorecard stated that sales of existing homes rose 2.4 percent in April and the supply of homes on the market decreased to 5.1 months in April from 5.2 months in March. However, distressed sales remain an issue which can partially offset market gains.
""This month's indicators show promise â€" more than 180,000 borrowers took advantage of our enhanced Home Affordable Refinance Program in the last quarter alone and foreclosure starts are declining as more homeowners secure mortgage relief â€" but with so many households still struggling to make ends meet it's clear that we have more work ahead,"" said HUD Acting Assistant Secretary Erika Poethig.
As of April 2012, more than 1.1 million homeowners received a modification through the Home Affordable Modification Program (HAMP), according to the ""Making Home Affordable Report"":http://www.treasury.gov/initiatives/financial-stability/results/MHA-Reports/Documents/April%202012%20MHA%20Report%20WITH%20SERVICER%20ASSESSMENTS_FINAL.pdf, also released with the scorecard Wednesday.
On average, homeowners who received a HAMP mod saved $535 a month. Of those entering the program, 86 percent received a permanent modification, with an average trial period of 3.5 months.
With their modification, about 70 percent of non-GSE borrowers had their principal reduced in recent months. The median amount of principal forgiven was $68,267 â€" or 31 percent. So far, 54,760 permanent principal reduction modifications have been started. The program was first implemented in October 2010.
Fannie Mae and Freddie Mac loans are currently not eligible to participate in principal reduction through HAMP under the direction of FHFA Acting Director Edward DeMarco.
To date, homeowners who receive a principal reduction are more deeply underwater and more are seriously delinquent at trial start than the HAMP participants overall.
For those who received a principal reduction modification, 88 percent were at least 60 days delinquent at trial start with a before-modification loan-to-value ratio (LTV) of 157 percent. For the overall HAMP population, 80 percent were delinquent at least 60 days with an LTV of 120 percent.
Three servicers were found to need only minor improvement when reviewed for program performance, and six servicers were deemed as needing moderate improvement in the first quarter of 2012. Out of all servicers, Bank of America had the highest number of active modications at 155,250, JPMorgan Chase came in second with 145,779, and Wells Fargo had the third highest at 120,960.
The primary hardships cited by homeowners in active permanent modifications were loss of income (66.9 percent), excessive obligation (11.4 percent), and illness of the principal borrower (3.4 percent).
Before receiving a modification, the monthly median payment was $1,428.55, and after the modification, the median payment was $824.
Out of all states, California had the highest percentage of HAMP activity at 25.2 percent, Florida second (12.1 percent), and New York (4.9 percent) third. HAMP activity includes active trials and active permanent modifications
