Loan Mods Increase Significantly In 1st Quarter

From Loan modifications and refinancings by Fannie Mae and Freddie Mac increased significantly in the first quarter as the volume of permanent modifications under the Administration’s Home Affordable Modification Program (HAMP) tripled, and refinancings steadily grew under the Home Affordable Refinance Program (HARP). Loans 60-plus-days delinquent also declined for the first time in two years, according to the FHFA’s First Quarter 2010 Foreclosure Prevention & Refinance report:
· Completed foreclosure prevention activity increased 75 percent to approximately 239,000, driven by increases in all home retention activity, short sales and deeds-in-lieu.
· HAMP permanent modifications tripled to 136,000 at the end of the first quarter, up from 43,000 in the fourth quarter. More than 448,000 borrowers were in a HAMP trial modification at the end of March.
· Loans 60-plus-days delinquent declined for the first time in two years, by nearly 23,800 loans to approximately 1.7 million.