Last month, mortgage lenders and loan servicers executed roughly 24,000 permanent loan modifications under the Making Home Affordable Program (HAMP), pushing the total since last year to more than 500,000, according to a report released today by the Treasury.
But the numbers were down from the previous six months, when participants averaged 37,000 new permanent mods per month.
Overall, 519,648 permanent mods have been started, and 36,206 have been canceled.
Homeowners in active permanent modifications have seen their monthly mortgage payment fall by a median 36 percent, or more than $500 per month.
With regard to trial modifications, 1,395,543 have been started and 719,487 have been canceled, typically for insufficient documentation, payment default, or ineligibility if the borrower’s debt-to-income ratio already exceeded 31 percent.
Of active trial modifications, 69,000 have lasted at least six months, down from more than 266,000 at the beginning of the second quarter, meaning servicers are beginning to tackle the backlog of aged trial mods.
More Help for Unemployed Borrowers and Those with Second Mortgages
The Treasury said unemployed homeowners may now be offered a minimum of three months’ forbearance prior to being considered for a HAMP trial modification.
However, it’s still unclear how successful all these efforts will be, and what the re-default rate will be going forward.