Growth in the number of permanent modification continues to slow, while August saw the fifth straight month of double-digit decreases in active trial modifications. Chicago region permanent loan modifications rose by 6.6 percent from July to August, compared to 14.8 percent growth from May to June and 9 percent growth from June to July (see charts A and B). Regional trial modifications fell by 21 percent from July to August, which is less severe than the 29.8 percent decrease from June to July.
HAMP’s momentum appears to be slowing, as permanent modification growth slows and the number of trial modifications decreases more sharply. Chicago region permanent loan modifications rose by 9 percent from June to July, compared to 15 percent growth from May to June and 17 percent growth from April to May (see charts A and B). Regional trial modifications fell by 30 percent from June to July, which is the third month in a row of month-over-month losses above 20 percent. Total modification activity in the Chicago region fell by 9 percent from June to July.
Nationally, total HAMP activity also fell by 7 percent from May to June. Permanent modifications rose by 14 percent while trial modifications fell by 22 percent.
At the Regional Home Ownership Preservation Initiative (RHOPI) 2010 Annual Plenary on July 15, more than 80 representatives from the public, private, and nonprofit sectors came together to hear leading practitioners explain how they are meeting those challenges—and worked together to come up with proposals to address persistent problems.
Click here to see the agenda.
The Government Accountability Office’s report “Further Actions Needed to Fully and Equitably Implement Foreclosure Mitigation Programs” studies the performances of 10 HAMP servicers who account for 71 percent of HAMP funds in regards to their performance on consistent and equitable treatment of borrowers, as well as the US Department of Treasury’s “actions to address the challenges of trial modification conversions, negative equity, redefaults, and program stability.” In its investigation, the GAO found seve
One of the most common foreclosure prevention activities is a loan modification. In a loan modification, a bank or mortgage servicer permanently changes the terms of the original loan in order to make the monthly payments more affordable for the borrower. This lower monthly payment can be achieved through reducing the loan principal, lowering interest rates, or extending the maturity date, among other strategies.
Nationally, total HAMP activity also fell by 13% from April to May. Permanent modifications rose by 15% while trial modifications fell by 27%.
Since I do not own stock in Chase, I used a shareholder proxy kindly provided by colleague Adam Rust of the Community Reinvestment Association of North Carolina (CRA-NC) to gain entry (through tight security) to the shareholder meeting. When I got my turn at the microphone, I explained that, as a customer of Chase and its predecessor banks in Chicago for nearly 28 years, I want to be proud of the bank where I do business.