HOPE NOW Mortgage Modifications Reach 5.6 Million

By Stevie Duffin Updated on 12/14/2012

By Daniel Duffield

HOPE NOW has exploded in popularity, enabling over 5.6 million mortgage modifications since the programs establishment in 2007, according to information released on Tuesday. Formed in the wake of the housing crisis, HOPE NOW consists of mortgage servicers, mortgage insurers, non-profit counselors and investors who have formed a private sector association.

According to data from June 2012, HOPE NOW helped 385,486 homeowners secure loan modifications during the first half of the year, a 28 percent decrease from the first half of the previous year. In terms of proprietary loans, modifications totaled in at 275,324 with 110,144 utilizing the Home Affordable Modification Program (HAMP).

In terms of the proprietary modifications finalized in the first half of 2012, approximately 79 percent, or 218,000 people, managed to reduce borrower payments on principal and interest, with 72 percent reducing payment by 10 percent or more. Of the modifications, ninety percent paid fixed rate interest for the first five years at least.

Reports from servicers in the HOPE NOW group showed that foreclosures decline 15 percent during the first half of 2012, at 1.06 million as opposed to 1.3 million last year. Completed foreclosures also declined 10 percent, from 395,722 to 438,764.

According to HOPE NOW, completed short sales increased 18 percent during the first half of the year compared to last year, rising from 176,171 last year to 207,618 in 2012.