HAMP Slows, But Second Mortgage Modifications Get Underway
It was another slow month for the Home Affordable Modification Program (HAMP), but second lien modifications got underway, according to a Treasury report.
During February, 26,147 permanent loan modifications were started under HAMP, but cancellation volume increased to 76,678.
Since the program got underway, 633,754 permanent mods have been started and 557,076 remain active.
Meanwhile, 29,089 trial mods were started during the month, bringing the total number of trials started to 1,522,196.
Unfortunately, 746,203 have been cancelled since program inception, and only 142,239 are in active trials.
The pool of eligible borrowers seems to be getting smaller and smaller, and perhaps it’s true that only 700,000 foreclosures will be prevented under the program.
Second Mortgages Being Modified
At the same time, the Second Lien Modification Program (2MP) is getting some legs, with 16,951 second mortgage modifications started so far.
And because homeowners with first lien mortgage modifications under HAMP become automatically eligible when their second lien servicer participates in 2MP, this number is expected to increase.
FHA-HAMP permanent modifications now total 866, with 2,977 trials started.
Additionally, more than 10,000 homeowners have agreements with their loan servicers to “exit their home” under the Home Affordable Foreclosure Alternatives program, via short sale or deed-in-lieu of foreclosure.
HAFA provides up to $3,000 for relocation assistance after a borrower loses their home.
But despite these numbers picking up, many of these government mortgage assistance programs are on the chopping block in the House.
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