February 2011 – Home Affordable Modification Program (HAMP) Stats

Loan Mod Program - February 2011

 Here’s some highlights of February’s stats: 

• 1,522,196 Total Trials Started (Approx)
• 142,239 Active Trial Phases
• 633,754 Permanant Modifications
• 746,203 Trial Phases Cancelled
• Average of 28,000 Permanent Modifications over last 6 months

The February Making Home Affordable report was, yet again, lackluster. Permanent Modifications (26,147) dipped again in February, signaling that the turnaround suggested in last month’s report may not happen at all.

I still haven’t seen any updates on the proposed HAMP Repeal and Deficit Reduction Act of 2011. A lot of experts view the program as costly and ineffective, although some people are actually being help (average monthly savings of $528 compared to payments before modification). We’re really just delaying the inevitable.

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January 2011 – Home Affordable Modification Program (HAMP) Stats

HAMP - January 2011

Here’s some highlights of January’s stats:

• 1,493,107 Total Trials Started (Approx)
• 145,260 Active Trial Phases
• 607,607 Permanant Modifications
• 740,240 Trial Phases Cancelled
• Conversion rates to permanent modification are expected to increase

Although new Permanent Modifications (27,957) dipped in January, the most recent Making Home Affordable report seems to suggest that servicers will pick up the pace in the coming months. The program has been averaging around 29,000 Permanent Modifications over the past six months so I’d call January’s results a little disappointing. It’s important to note that this conversion rate decrease could very well just be seasonal. Or it could also be a sign that fewer eligible trial modifications are in the pipeline. And BTW, if there’s this huge pipeline of applicants that need loan servicing, why aren’t they hiring people to do it? If you start to think about the size of this program and that only 29,000 permanent modifications are completed each month, wouldn’t you think there’s something wrong with the process? Is it possible that lenders are taking there time in hopes the program just ends? Sure sounds like.

I continue to have my doubts regarding the program’s impact. The pace of permanent modifications is embarrassing and, on top of that, about 10% of the permanent modifications end up cancelled due to missed payments. There has to be a better solution.

I haven’t seen any news on the proposed HAMP Repeal and Deficit Reduction Act of 2011. I’ll keep you updated if and when that develops into a story.

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December 2010 – Home Affordable Modification Program (HAMP) Stats

Permanent Modifications (30,030) outweighed Trial Phases Cancelled (5,400) by nearly 6-to-1, as the program is now averaging around 30,000 Permanent Modifications per month. I think the program has finally sifted out those applicants who never really qualified for assistance from the start. The report notes that servicers are streamlining their processes and are moving through the backlog of applications. However, there is legislation in congress to put an end to the program altogether (HAMP Repeal and Deficit Reduction Act of 2011). We’ll have to keep an eye on this one. I’m also really interested to see what’s in the January report. This month’s report seems to indicate that we’ll see even better results as the year goes on.

Here’s some highlights of December’s stats:

• 1,466,448 Total Trials Started (Approx)
• 152,289 Active Trial Phases
• 579,650 Permanant Modifications
• 734,509 Trial Phases Cancelled
• At 12 months, nearly 85% of homeowners remain in a permanent modification, with less than 16% of homeowners missing three consecutive payments.

HAMP - December 2010

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Foreclosure Crisis Likely to Worsen in 2011

The foreclosure crisis will worsen in 2011 according to experts, and myself. Over 1 million homes were lost to foreclosure in 2010, and RealtyTrac estimates that currently about 5 million borrowers are over 2 months behind on their payments. While it’s unlikely all of those 5 million borrowers will fall victim to foreclosure, I think it’s fair to say we’re likely to see an increase from the prior year’s 1 million foreclosures. 

It’s also unlikely that the recent improvements in the job market (unemployment has dropped slightly and one hundred thousand jobs were added in December) will have a significant impact on the foreclosure crisis. I just don’t see us adding jobs at a pace fast enough to make an impact. There’s still a large number of loans that are scheduled to ‘recast’ in 2011 (when the payment on an ARM adjusts so the loan will fully amortize in 30-years; see http://www.therealestateledger.com/2010/03/a-larger-wave-of-foreclosures-is-set-to-break/). That problem will continue to weigh on the housing market for the rest of 2011.

Unless there are extreme measures taken to improve both the job market and assist those borrowers facing foreclosure, it’s safe to assume that 2011 will be another bad year for home owners. The foreclosure crisis will likely peak in 2011 and improve in the following years. I’ve even been hearing some experts talk about a housing shortage in 2012. The theory behind that being a lack of home building the past few years. But that’s another topic….

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November 2010 – Home Affordable Modification Program (HAMP) Stats

Permanent Modifications (29,972) outweighed Trial Phases Cancelled (9,622) by more than 3-to-1, as the program is starting to move in the right direction. However it’s still possible the recent positive trends could be related to crackdowns on how paperwork is being filed and, furthermore, there’s reason to believe that lenders have been a little more flexible during these holiday months.

Here’s some highlights of November’s stats:

There are now 1,426,833 Total Trials Started (Approx)
148,104 Active Trial Phases
549,620 Permanant Modifications
729,109 Trial Phases Cancelled

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October 2010 – Updated Government Loan Modification Stats

For (what I believe is) the first time in the Home Affordable Modification Program history, it appears October brought us a month where there were more Permanent Modifications (23,750) than Trial Phases cancelled (19,563).

This could be related to the crackdown on foreclosure filings, or it could be that most applicants whom were poised to fail have already done so. It remains to be seen what November will hold, but I expect the same sort of leveling out. Here’s some highlights of October’s stats:

• There are now 1,395,543 Total Trials Started (Approx)
• 156,408 Active Trial Phases
• 519,648 Permanant Modifications
• 719,487 Trial Phases Cancelled

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August 2010 – Updated Government Loan Modification Stats

The August 2010 data for the Home Affordable Modification Program (HAMP) is in. The negative trend is continuing, albeit at a slower pace, and is fueling claims that the program failed to curb foreclosures.

• Successful Completions are at 449,000, up from 421,804 in July
• Program Drop-outs are at 680,000, up from 630,000 in July
• The program now has a dropout rate of over 52% of the 1.3 million applicants

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FHA Short Refinance Option Now Available

On September 7th, the U.S. Department of Housing and Urban Development announced a new plan to help responsible homeowners who may be struggling with their mortgage payments. The goal is to assist nearly 4 million homeowners through the end of 2012. Here’s a summary of the program highlights of the FHA’s short refinance program:

• requires consent of all lien holders
• the existing loan must not be FHA-insured
• borrowers 1st lien holder must agree to write off at least 10% of the unpaid principal balance
• new FHA-insured loan must have an loan-to-value ratio of 97.75%
• combined LTV of all loans must be no greater than 115%
• homeowner must owe more on their mortgage(s) than their home is worth (being ‘underwater’)
• homeowner must be current on their existing mortgage
• homeowner must qualify for the new loan under standard FHA underwriting requirements
• the property in question must be the homeowners primary residence
• incentives will be provided to existing second lien holders who agree to full or partial lien extinguishments
• servicers must execute a Servicer Participation Agreement (SPA) with Fannie Mae on or before October 3, 2010
• participation is voluntary

You can also view the official press release by clicking here

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Quality Office Space Available in Eltingville

Quality Office Space Available in Eltingville.

4350 Hylan Blvd between Richmond Ave and Seacrest Ave. Click here for map

Lower Level is currently available and set up as two offices but it can be converted to suit any needs. Upper Level is a Dentist office and is not available. Call 917-731-6547 for information on monthly rent, common charges and any other questions.

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July 2010 – Updated Government Loan Modification Stats

Since I was a little late on the June stats, I already have the July 2010 number for the Home Affordable Modification Program (HAMP) ready to go.

• Successful Completions are at 421,804, up from 389,000 in June
• Program Drop-outs are at 630,000, up from 530,000 in June.
• The program now has a dropout rate of over 48% of the 1.3 million applicants

July 2010 Home Affordable Modification Program (HAMP) Stats

The finger-pointing continues, as the banks blame the government for rushing unqualified applicants into the modification process and the government denies placing any pressure. But the reality is that the government and banks were both forced to act quickly at the onset of the financial crisis. That fact continues to lead to an increasing rate of applications being drop from HAMP.

And where will the majority of these applicants end up? Sadly, most will end up in foreclosure. The backlog of applicants that will ultimately be dropped will set off a wave of foreclosures that will last for years to come.

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