Nearly half of the borrowers who have entered the Home Affordable Modification Program (HAMP) have fallen out, with servicers having canceled more than 100,000 trial and permanent modifications in July, the Obama administration reports in its latest housing scorecard. Of the approximately 1.3 million borrowers who have enrolled in HAMP since its inception, nearly 630,000 have been canceled out of the program.
‘While there has been some stabilization in the housing market, it remains clear that we have more work ahead,’ HUD Assistant Secretary Raphael Bostic said in a statement Friday.
Servicers reported about 37,000 new permanent modifications last month – the lowest increase since December 2009 – bringing the total number of active permanent mods to 421,804. As cancellations escalate and new permanent mods slow, the rate of new trial modifications is also losing steam, totaling about 17,000 in July.
‘This program has helped to stabilize a housing market that remains fragile and has redefined the modification standard for the industry – both of which are delivering real benefits to struggling homeowners in communities across the country,’ Treasury Assistant Secretary for Financial Stability Herb Allison added in a statement Friday.Â ‘Currently, servicers are working through their pending modifications, and while Making Home Affordable works for a number of homeowners, many others are offered other means of avoiding foreclosure.’
According to the administration's report, 45% of HAMP cancellations end up in servicers' alternative modification programs, while 11.6% of cancelletions have started or completed the foreclosure process.
The number of active trials initiated at least six months ago fell from 166,000 in June to 118,000 in July, with JPMorgan Chase and Bank of America accounting for about half of the population. The remaining decisions on aged trials should be made this month, the report says.