Hope Now Has Record Month, But Re-Default Rate High
Foreclosure prevention alliance Hope Now completed 123,000 loan modifications and 125,000 repayment plans in January, a slight increase from the 239,000 workouts in December.
It was the largest number of loan modifications in a single month since the program began in July 2007, while repayment plans matched a record high previously seen in October 2008.
“In the midst of this ever-changing and extremely Read more
Chase Banking Chief Says Loan Mod Re-Default Rate Not So Bad
JP Morgan Chase’s retail banking chief Charles Scharf told shareholders the delinquency rate on modified mortgages isn’t as bad as what’s been tossed around lately.
During the company’s investor day in New York, he said loan modifications can be successful “if done properly,” meaning if important things like income are actually verified the second time around.
He noted that a loan modification Read more
Fitch: Loans Receiving Balance Reductions Re-Default More
Though principal balance reductions seem to be all the rage in the loan modification world, they may not be as effective as simple principal and interest payment reductions, according to a report from Fitch Ratings.
The company said initial, but limited data for modifications with large balance reductions (20% or more) exhibited higher 60 day+ re-default rates than loans with decreased monthly mortgage payments of Read more
Mortgage Re-Default Rates Going from Bad to Worse
The percentage of current and performing mortgages fell from 93.33 percent at the end of the first quarter to 91.47 percent at the end of the third quarter, according to the OCC and OTS Mortgage Metrics report released today.
Meanwhile, efforts to get bad mortgages back on track seem to be failing at a rather high clip, with 55 percent of loans modified in the first quarter 30 days late and nearly 37 percent 60 days Read more
Ocwen Boasts About Low Re-Default Rate
Subprime loan servicer Ocwen Financial said today the re-default rate on loans it services was less than half the number recently disclosed by OCC chief John Dugan.
After six months, the 60-day delinquency rate on Ocwen-modified loans was 24.6 percent, well below the 53 percent rate unveiled by the OCC earlier this week.
Of course, the OCC numbers are tied to 30-day lates, which are less severe than those Read more