Number of permanent modifications nearly doubles over previous month; over one million trial modifications started
WASHINGTON - The U.S. Department of the Treasury and the Department of Housing and Urban Development (HUD) today released January data for the Administration's Home Affordable Modification Program SM (HAMP SM), demonstrating that the number of homeowners receiving immediate relief and converting to permanent modifications continues to rise. More than 116,000 homeowners now have permanent modifications, nearly doubling the number from December, which also marked record progress. An additional 76,000 permanent modifications have been offered, and are waiting only for the borrower's signature. In total, Over 1 million homeowners have started trial modifications and nearly 1.3 million offers for trial modifications have been extended to homeowners.
"With nearly one million homeowners paying less each month and the number of permanent modifications steadily rising, HAMP is doing the job it was designed to do," said Phyllis Caldwell, Chief of Treasury's Homeownership Preservation Office. "Struggling families are receiving payment relief and the housing market is showing signs of stabilization."
Mortgage modifications are one piece of the Administration's broader housing market stabilization plan. Other efforts include support for lower mortgage rates and access to credit, state and local housing agency initiatives, tax credits for homebuyers, neighborhood stabilization and community development programs, and support for mortgage refinancing. After just one year since President Obama announced the Homeownership Affordability and Stability Plan, more than 4 million homeowners have refinanced their mortgages to more affordable levels, interest rates are at record lows, home prices and home sales are rising again and the economy is growing.
According to HUD Senior Advisor for Mortgage Finance William Apgar: "As the number of permanent modifications grows, HUD will continue to work with our Administration partners and utilize our broad network of housing counseling agencies to increase those numbers still further."
HAMP is the most ambitious government program of its kind - reaching far more homeowners than any previous program has ever attempted. Less than a year after its launch, the program is providing significant relief to struggling families. More than 940,000 homeowners currently have reduced monthly mortgage payments with a median savings of more than $500. That is an aggregate savings of more than $2.2 billion.
With nearly 1.3 million trial modifications offered already, the program is on pace to meet its overall program goal of providing 3-4 million homeowners the opportunity to stay in their homes.
The January HAMP report can be found here