Fewer Loan Modifications Completed

Orange County Register - Jeff Collins

The nation’s mortgage lenders modified fewer mortgages to help keep delinquent borrowers in their homes this past summer, even though mortgage starts and sales increased, a new survey shows.

Lenders have been working to modify loans of borrowers who have fallen behind on payments by lowering monthly payments, lowering interest rates or in some cases by reducing the amount owed.

Hope Now, a coalition of loan servicers, investors and counselors, reported that loan mods fell nationwide to 55,828 in August.

That compares to monthly averages ranging from 84,000 to 115,000 loans modified a month in the previous nine months.

*Loan Modifications (FC=foreclosure; del=delinquent)*
	Q4-2010	Q1-2011	Q2-2011	.	Jun-11	Jul-11	Aug-11
Loan Mods	345,197	298,449	251,424	.	81,903	84,015	55,828
.	.	.	.	.	.	.	.
FC starts	656,904	591,159	534,207	.	194,310	185,076	217,955
FC sales	180,818	222,691	216,073	.	72,570	64,578	67,663
60+ days del	3,019,282	2,858,461	2,785,156	.	2,752,961	2,810,511	2,797,573