WASHINGTON, DC--(Marketwire - May 27, 2009) - HOPE NOW, the private sector alliance of
mortgage servicers, non-profit counselors, and investors that has been
working aggressively to prevent foreclosures and keep homeowners in their
homes, today announced that its members and the larger mortgage lending
industry completed 270,000 homeowner solutions in April. This is the
largest number in any month since HOPE NOW began to compile data.
In April 2009, HOPE NOW members and the larger mortgage lending industry
modified 127,000 mortgages and completed 143,000 repayment plans.
This slight drop in the number of modifications and increase in payment
plans from March was partially caused by the industry beginning to
implement the Obama administration's Home Affordable Modification Program.
Under the conventions of the HAMP, loans are subject to a three-month-trial
period before a modification can be completed and, therefore, are often
classified as repayment plans or trial modifications. Some of these trial
modifications will result in formal reporting of modifications after 90
days. As a result and, as expected, the number of repayment plans increased
and the number of modifications decreased from what otherwise might have
been recorded.
According to Faith Schwartz, HOPE NOW's executive director, the mortgage
lending industry is working hard to make HAMP a successful tool to fight
the foreclosure crisis. "Many HOPE NOW members see HAMP as an important
opportunity for homeowners in trouble," she said. "The number of
homeowners helped by the industry each month should continue to increase as
this program continues to be implemented."
The HOPE NOW April data shows:
-- The number of 60+ days delinquencies was the same in April as in March
at just under 3 million
-- Foreclosure starts dropped by more than 16 percent, 290,000 in March
to 249,000 in April
-- Foreclosure sales increased, from 53,000 in March to 65,000 in April
According to Michael Bright, HOPE NOW's chief statistician, many HAMP trial
modifications initially show up as repayment plans. "The increase in
repayment plans recorded in April is due, in part, to the first trial
modifications completed under the administration's program," he said.
"Assuming borrowers complete the trial period successfully as mandated by
the government, these loans will eventually be recorded as having been
modified." "The April results are not, therefore, strictly comparable to
what HOPE NOW members did in previous months," he added.
HOPE NOW continues to reach borrowers through millions of letters; a new,
enhanced website at
www.hopenow.com; and homeowner outreach events across
the country. HOPE NOW most recently held events in Miami, FL, Charlotte,
NC and Cleveland, OH. The next outreach event is scheduled for May 28 in
Orlando, FL. For more information, please go to
www.hopenow.com.
A summary table of the results is attached and can be found at:
http://hopenow.com/press_releases.html
ABOUT HOPE NOW
HOPE NOW coordinates a nationwide campaign to reach homeowners who may be
at risk of losing their homes. HOPE NOW members have agreed to make
substantial additional efforts to contact homeowners whose mortgages will
reset in the coming months and to further expedite the process used to
determine how best to keep them in their homes.
For more information about HOPE NOW, including a full list of members, go
to
www.hopenow.com.
The Homeownership Preservation Foundation, a HOPE NOW member, created and
operates the Homeowner's HOPE™ Hotline, which is available 24 hours a
day, 7 days a week, and 365 days a year. The Homeowner's HOPE™ Hotline
received 1.1 million calls in 2008. There is no cost to homeowners for
contacting a nonprofit counselor by calling 1-888-995-HOPE.
WORKOUT PLANS (Repayment Plans + Modifications) and
FORECLOSURE SALES
July 2007 - April 2009
BORROWER LOAN WORKOUT PLANS
2007 Q3 2007 Q4 2008 Q1 2008 Q2 2008 Q3
---------- ---------- ---------- ---------- ----------
Repayment Plans 357,900 348,531 314,453 302,565 335,152
---------- ---------- ---------- ---------- ----------
Prime 154,383 160,127 148,814 141,840 179,864
---------- ---------- ---------- ---------- ----------
Subprime 203,517 188,404 165,639 160,725 155,288
---------- ---------- ---------- ---------- ----------
Modifications 72,773 133,467 170,216 220,349 256,188
---------- ---------- ---------- ---------- ----------
Prime 29,714 36,634 48,148 56,202 70,503
---------- ---------- ---------- ---------- ----------
Subprime 43,058 96,833 122,068 164,147 185,685
---------- ---------- ---------- ---------- ----------
Workout Plans 430,673 481,998 484,669 522,914 591,340
---------- ---------- ---------- ---------- ----------
Prime 184,097 196,761 196,961 198,042 250,367
---------- ---------- ---------- ---------- ----------
Subprime 246,575 285,237 287,708 324,872 340,973
---------- ---------- ---------- ---------- ----------
Jul
2007-Apr
2009 ("Life
to Date")
2008 Q4 2009 Q1 Apr-09 Totals
---------- ---------- ---------- ----------
Repayment Plans 349,622 350,398 142,831 2,501,452
---------- ---------- ---------- ----------
Prime 203,171 216,361 101,639 1,306,199
---------- ---------- ---------- ----------
Subprime 146,451 134,037 41,192 1,195,253
---------- ---------- ---------- ----------
Modifications 322,105 391,155 127,000 1,693,254
---------- ---------- ---------- ----------
Prime 91,880 121,329 47,153 501,563
---------- ---------- ---------- ----------
Subprime 230,225 269,826 79,847 1,191,691
---------- ---------- ---------- ----------
Workout Plans 671,728 741,553 269,831 4,194,706
---------- ---------- ---------- ----------
Prime 295,051 337,690 148,792 1,807,761
---------- ---------- ---------- ----------
Subprime 376,677 403,864 121,039 2,386,945
---------- ---------- ---------- ==========
FORECLOSURE SALES
------------------------------------------------------
2007 Q3 2007 Q4 2008 Q1 2008 Q2 2008 Q3
---------- ---------- ---------- ---------- ----------
Foreclosure Sales 153,408 168,213 203,503 246,192 263,326
---------- ---------- ---------- ---------- ----------
Prime 60,699 64,958 83,352 108,202 130,700
---------- ---------- ---------- ---------- ----------
Subprime 92,709 103,255 120,151 137,990 132,626
---------- ---------- ---------- ---------- ----------
Jul
2007-Apr
2009 ("Life
to Date")
2008 Q4 2009 Q1 Apr-09 Totals
---------- ---------- ---------- ----------
Foreclosure Sales 204,943 208,282 64,751 1,512,617
---------- ---------- ---------- ----------
Prime 101,230 113,616 38,623 701,381
---------- ---------- ---------- ----------
Subprime 103,713 94,665 26,128 811,236
---------- ---------- ---------- ==========
(Workout Plans = Repayment Plans + Modifications)
Repayment Plans: A plan that allows the borrower to become current and
catch up on missed payments that are appropriate to the
borrower’s circumstances, which involves deferring or
rescheduling payments but the full amount of the loan
is expected ultimately to be paid and within the
original contractual maturity of the loan.
Modifications: A modification occurs any time any term of the original
loan contract is permanently altered. This can involve
a reduction in the interest rate, forgiveness of a
portion of principal or extension of the maturity date
of the loan.