The number of principal-reduction modifications started under the Home Affordable Modification Program (HAMP) grew from 29,406 in July to 35,001 in August, the U.S. Treasury Department reports in its latest HAMP scorecard.
According to the latest data released this week, 22,149 loans are active trial modifications under the Principal Reduction Alternative (PRA), while 10,544 loans are active permanent modifications. The median principal amount reduced for active permanent modifications through the end of August was $67,857, according to the report.
The broader HAMP program, meanwhile, reported 25,434 new permanent modifications in August, bringing the total number of active permanent modifications to 690,969. More than 125,800 permanent modifications have been canceled since the program began in 2009. Borrowers in active first-lien permanent modifications save a median of $525 per month – more than one-third of the median pre-modification payment, the Treasury adds.