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Wednesday, August 17, 2011

Is the Government Modifying Loans?

Federal Government Housing and Mortgage Scorecard for July, 2011: is the Government Modifying Loans?


Periodically, the Department of Housing and Urban Development (HUD) works with the Department of Treasury to release a "Housing Scorecard" which is designed to summarize the most recent and relevant information available regarding the American housing and mortgage loan market. The July, 2011 Scorecard includes the following information.



  • Only 4.4% of prime mortgages were delinquent more than 30 days (down from a 2010 high of 5.9%).

  • 32.9% of sub-prime mortgages were delinquent more than 30 days (a staggering number, but down from a 2010 high of 36.6%).

  • Since the Home Affordable Modification Program (HAMP) began in April, 2009, 1,639,382 borrowers entered into trial modifications, with 763,071 (46.55%) having converted to permanent mortgage loan modification status. 115,515 trials were in progress as of July, 2011. 

  • 74% of eligible applicants who applied for mortgage loan modifications via HAMP achieved permanent loan modifications within 3.5 months of entering the Program. (There is typically a mandatory 3 month "trial modification" period before the modification, after which the modification is supposed to become permanent if all conditions of the Program have been met.) In June, 2010, it reportedly took 5.2 months for 74% of participants to achieve permanent modification status.

  • 93% of those "permanent" modifications were still active after 6 months; 84% were still active after 12 months.

  • Of those who have had their mortgage loan modifications modified via a Federal Government sponsored program, and who are still in the program 1 year later, approximately 20% are now 60 days delinquent in their payments, despite the modifications.

  • Of those who have had their mortgage loan modifications modified via a Federal Government sponsored program, and who are still in the program 6 months later, approximately 10.5% are now 60 days delinquent in their payments, despite the modifications.


If you have challenges related to your mortgage loan, or are otherwise interested in a mortgage loan modification, please don’t hesitate to contact McGrath & Spielberger, PLLC: contact us.