The U.S. Department of the Treasury and the Department of Housing and Urban Development today released April data for the Administration’s Home Affordable Modification Program showing that there were permanent modifications for almost 300,000 homeowners – an increase of 68,000 or almost 13 percent over March. New in this month’s report is information about servicer-specific conversion rates to permanent modifications and servicer performance in giving homeowners timely decisions. The data show that there is wide variation among servicers in these areas, further demonstrating the need for clearness regarding servicer performance.“The number of homeowners receiving significant relief through a mortgage modification continues to rise,” said Chief of Treasury’s Homeownership Preservation Office Phyllis Caldwell. “Our focus now is on improving the homeowner experience and holding servicers accountable for their performance.”
“As the number of homeowners receiving permanent modifications continues to increase, the Administration’s comprehensive efforts are making an impact in the housing market’s overall recovery,” said FHA Commissioner and HUD Assistant Secretary for Housing David Stevens. “Today, mortgage rates remain at historic lows, around five percent; foreclosure starts are down 27 percent from last year this time; and home prices and the pace of home sales have stabilized in recent months.” Last week, as part of a continued effort to improve servicer performance, the Administration hosted a summit with representatives from participating mortgage servicing companies to discuss ways to move qualified homeowners into permanent modifications, improve homeowners’ HAMP experience, and maintain the pace of new trial modification starts. The Administration also outlined for servicers its plans to begin reporting more detailed performance measures. By July 2010, this reporting will include the eight largest servicers and will focus on servicer agreement, program execution, and homeowner experience.
In the coming months, the Administration will continue to develop its methods of holding servicers accountable for their responsibility to provide helpful and timely assistance to struggling homeowners. While enabling qualified homeowners to modify their mortgages is vital to addressing the housing crisis, this program is just one part of the Obama Administration’s multi-faceted approach to assisting homeowners and stabilizing the housing market, which also includes state and local housing agency initiatives, tax credits for homebuyers, neighborhood stabilization and community development programs, mortgage refinancing, and support for Fannie Mae and Freddie Mac.
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