New Permanent Mod Totals Slip In October

Home Affordable Modification Program (HAMP) servicers permanently modified 23,750 loans through the government initiative last month, according to newly released data from the Obama administration. With servicers having averaged about 37,000 new permanent modifications per month over the last half-year, October's total of less than 24,000 indicates a continued slowdown in permanent-modification volume.

Incoming loans, however, rose slightly above monthly averages for the past six months. New trials were begun on 26,129 loans last month. They had averaged about 23,000 each month.

The administration's report also shows that servicers are making headway in clearing the inventory of aged trial modifications. Through October, 69,400 loans had been in trial status for at least six months, as compared to 266,000 at the beginning of the second quarter.

More than 32,000 of the aged trials belonged to Bank of America, data show. Earlier this week, the bank announced that 18,000 of the loans have received permanent modification offers that are pending customers' signatures. Another 4,5000 loans are pending cancellation, and about 10,000 aged trials are awaiting a decision.

This monthly report additionally shows that more servicers are implementing HAMP spin-off programs, such as the Second-Lien Modification Program (2MP). Eighteen servicers, including Bank of America, Citi, Wells Fargo, Chase, GMAC, PNC and OneWest, have signed on as participants in 2MP. The 18 shops cover almost two-thirds of the second-mortgage market, the administration says.

SOURCE: U.S. Department of Housing and Urban Development


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