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Tuesday, August 23, 2011

US Government Claims Mortgage Loan Modification Success

US Government Claims Mortgage Loan Modification Success


The Federal Government claims a remarkable increase in successfully modifying mortgage loans over the past 13 months. The July, 2011 U.S. Housing Scorecard includes the following information.



  • Since 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. Considering that 115,515 trials were reported to be in process, when those trials are removed (as the eventual conversion rate of those trial can't be known, although it can be predicted), the all-time success rate in converting HAMP trial mortgage loan modifications into permanent mortgage loan modifications is 50.07%.

  • As of June, 2010, 42% of eligible applicants to the Home Affordable Modification Program (HAMP) had been converted to permanent mortgage loan modifications. Since June, 2010, the Obama Administration claims a  success rate if 74%. Significant changes were made to the Home Affordable Modification Program (HAMP) in June, 2010, as a result of widespread and intense criticism of the program.

  • Between July, 2010 and July, 2011, 74% of borrowers eligible for HAMP who applied for mortgage loan modifications via the Program 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.

  • HAMP modifications in 2011 have generally been larger in sum (greater reduction of the monthly payment amount), with correlating success rates.

  • As of July, 2011, 23,014 borrowers in a HAMP trial modification remained in trial status for 6 mos. or more, compared to 165,543 as of June, 2010.

  • Overall, 91% of borrowers who had a reduction of over 50% in monthly payments remain in HAMP after 1 year.


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.