Tag Archives: Loan Modifications

The majority of the amount credited in the second quarter ($1.7 billion) went to modification of 9,671 loans. Another $186 million of the amount credited in Q2 went to extend 16,231 new home loans to borrowers in HUD-designated hardest-hit areas, borrowers who lost their homes to short sales or foreclosures, and low- and moderate-income borrowers.

Single-family mortgage loans backed by Fannie Mae and Freddie Mac perform better after modification when they are modified through the government's Home Affordable Mortgage Program (HAMP), according to the FHFA's Foreclosure Prevention Report for Q2 2015 released this week.

The mortgage industry reported about 122,000 non-foreclosure solutions (including short sales, deeds-in-lieu of foreclosure, and other workout plans) for July, while about 29,000 foreclosures were completed.

Ambiguity and/or delays in the loan modification process were a frequent subject of the complaints, while others said they were not considered for all loss mitigation options available, they were incorrectly denied a modification, or the terms of the modification were unfavorable.

According to Treasury's Making Home Affordable Program Performance Report for Q1 2015, approximately 2.3 million homeowners had started HAMP trial modifications in the six-year existence of the program.

Foreclosure activity declined substantially year-over-year in Q1. The number of properties in the process of foreclosure as of the end of the quarter dropped down to 299,424, a decline of 30.8 percent from the same quarter a year earlier. The nearly 300,000 loans in the process of foreclosure during Q1 comprised about 1.3 percent of the loans in the portfolio.

In Q1 2015, Black Knight found that 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. Home retention actions included permanent proprietary mods and permanent mods through the government's Home Affordable Modification Program (HAMP).

Loan modifications facilitated through the government's Home Affordable Mortgage Program (HAMP) 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.

After slipping in October, purchase and issuance activity picked up again, coming to $29.5 billion, Freddie Mac reported. That was offset by an increase in sales and liquidations, which whittled the portfolio's monthly increase to about $614 million. In other monthly changes, the unpaid principal balance (UPB) of Freddie Mac's mortgage-related investments portfolio fell by approximately $4.7 billion last month, a negative annualized growth rate of 14.0 percent.

The U.S. Department of Housing and Urban Development (HUD) and Department of Treasury have announced enhancements to the government's Making Home Affordable (MHA) program to assist homeowners who are struggling to make monthly mortgage payments.