And roughly 16 percent of permanent mods were 60+ days delinquent.
At six months, less than 10 percent were 60+ days late and fewer than six percent had defaulted from the program.
The results are better than many expected, as some had estimated that three-quarters of loan modifications could re-default.
So maybe loan modifications do work? But it’s still too early to really gauge future performance.
New Loan Mods Continue to Drop
A total of 27,840 permanent loan modifications were extended to borrowers in September, down from 33,342 a month earlier.
The numbers continue to dwindle, as most eligible borrowers have already received assistance via the program.
To date, nearly half a million permanent mods have been granted to homeowners, with roughly 30,000 of those since canceled.
Monthly Mortgage Payments Reduced by $500
The aggregate reduction in monthly mortgage payments for borrowers in both trial and permanent loan modifications now totals more than $3.4 billion.
The median monthly payment has been reduced by $520.68, and the debt-to-income ratio has been reduced from 45%/79.7% to 31%/63.3%.
That means borrowers were sending nearly half of their income towards mortgage payments before modification, and now just less than a third.
But still sending about two-thirds toward all monthly debt obligations, meaning re-default risk remains a major concern.