HUD, Treasury Unveil Housing Scorecard

more than 152,000 Home Affordable Modification Program (HAMP) trial modifications were canceled in May, Obama administration officials say only a small percentage of borrowers who fall out of the federal program end up going all the way through foreclosure. In a new housing ‘scorecard’ published Monday, the U.S. Treasury Department and the Department of Housing and Urban Development (HUD) report that nearly half of borrowers who are unable to enter a HAMP permanent modification enter an alternative modification with their servicer, while fewer than 10% of canceled trials move to foreclosure sale. Officials say the [link= ]new scorecard[/link], which will be published monthly, will highlight modification efforts beyond HAMP, including data on servicers' proprietary mods and Federal Housing Administration loss mitigation interventions. ‘With this housing scorecard, we not only expect to be judged for our successes and failures, we want to be judged and held to a high standard for all of our housing recovery efforts,’ HUD Secretary Shaun Donovan said in prepared remarks this morning. According to Donovan, 2.8 million borrowers have received restructured mortgages since April 2009, nearly tripling the number of foreclosures completed during the same period. During Monday's call with reporters, administration officials attributed the high number of HAMP cancellations to a variety of causes. Donovan noted that this month's HAMP report includes a significant number of ‘legacy cancellations,’ many of which were due to servicers' exhausting quality-control steps before removing a borrower from a trial modification. The Treasury's assistant secretary for financial stability, Herb Allison, added that other cancellations were the result of servicers' being unable to verify income that borrowers had previously stated in order to enter HAMP. It will take servicers another month or two to work through the backlog, Allison commented. ‘The facts are [that] the large majority of those who enter trial modifications are still today successfully able to stay in their homes through the range of alternatives available to them,’ Donovan said, adding that HAMP has served as a model for servicers' own modification programs, which increasingly result in lower monthly payments for borrowers. The administration's [link=]May HAMP report[/link] shows that 2.1% of trial modifications canceled by the program's eight largest servicers through the end of April wound up as either short sales or deed-in-lieus, and Donovan said he expects short-sale numbers to increase as the federal Home Affordable Foreclosure Alternatives program ramps up. Speaking specifically about Federal Housing Administration (FHA) loan performance, Donovan said officials have seen ‘some encouraging signs in terms of early FHA performance.’ Despite a slight uptick in the insurer's delinquency rate recently, ‘FHA delinquencies are actually down at this point, given stronger performance in the first part of this year.&


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