The Hope Now Alliance is the private sector loan modification alliance of mortgage servicing companies, mortgage insurers and non-profit counseling agencies who are dealing with non-HAMP qualified loans. Primarily these are vacant and investor-owned homes that no longer have a resident owner. According to Faith Schwartz, Executive Director of Hope Now Alliance, approximately 25% of single family homes are owned by Investors who do not qualify for the HAMP program.
Hope Now Alliance closed almost 100,000 proprietary loan modifications during the month of February compared to the Treasury Department’s HAMP Program which closed 50,364. Between the two programs nearly 150,000 loans were modified, but the larger portion of these were by the private program.
Another interesting fact coming out of the private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors is that "99,499 homeowners received proprietary loan modifications for the month. Combined with the United States Treasury’s recently released Home Affordable Modification Program (HAMP) data that showed 50,364 HAMP modifications for February, the total number of loan modifications is almost 150,000 for the month. Most significant in the data is the fact that 74% of proprietary loan modifications done in February, or 73,000 loans, involved reductions of principal and interest payments. These non-HAMP loan modifications also are not taking money from Treasury to subsidize the deals.
Private enterprise at work!
Arlington, VA 22207