Private-Public Collaboration Results in 8M Foreclosure Preventions

Collaboration between the private and public sectors has resulted in 8 million non-foreclosure solutions completed for at-risk families since 2007, according to HOPE NOW, a voluntary alliance of mortgage servicers, investors, mortgage insurers, and nonprofit housing counselors.

Over the last six years, the mortgage industry has completed more than 6.71 million permanent loan modifications, based on HOPE NOW’s data. Of those loan modifications, more than 5.4 million were made through servicers’ proprietary programs and 1,268,635 were completed under the federal government’s Home Affordable Modification Program (HAMP). In addition, since December 2009, short sales total about 1.39 million.

HOPE NOW reports approximately 181,000 homeowners received permanent loan modifications from mortgage servicers during the third quarter of this year—136,000 of which were proprietary and 45,136 HAMP mods.

Looking at non-HAMP loan modifications from the month of September, HOPE NOW’s report cites key characteristics that generally go hand-in-hand with more sustainable mortgages.

The alliance says mods that included fixed interest rates of five years or more accounted for 93 percent of the month’s

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