More than 95,500 homeowners received proprietary loan modifications – i.e., non-Home Affordable Modification Program mods – in February, according to new estimates from HOPE NOW. HAMP modifications performed during the month totaled 52,905, meaning that servicers' own modification efforts have nearly doubled HAMP modifications for the second month in a row.
HOPE NOW, which recently overhauled its data reporting to focus on non-HAMP loss mitigation, previously reported that servicers modified through their internal programs about 99,500 loans in January. HAMP data from that month indicates 50,364 modifications were executed through the federal program.
Approximately 78% of the proprietary loan modifications completed in February included a reduction of principal and interest. The data also showed that foreclosure starts and sales dropped 17% for the month, along with a 4% decrease in the number of 60+ day delinquencies.
The total number of loan workout plans provided to homeowners (including repayment plans) in February was 279,831.
"Our data shows that mortgage servicers are continuing a strong effort on proprietary and HAMP modifications in the first two months of 2010," says Faith Schwartz, executive director of HOPE NOW. Additionally, we are encouraged by the decreases in serious delinquencies and foreclosures."
SOURCE: HOPE NOW