Tuesday, June 22, 2010

Mortgage Loan Compliance | HAMP Dropouts Go Private

HUD Secretary Shawn Donovan said only 11% of borrowers in the Home Affordable Modification Program payment trials have fallen into foreclosure or lost their homes through a short sale.

"It is a clear indication that the efforts of HAMP, combined with other efforts, are having a substantial effect," the HUD secretary told reporters on Monday. Another 26% of the 277,600 borrowers that dropped out of HAMP trials as of April 30, 2010 are still being evaluated by servicers for a proprietary modification.

The secretary also noted that 2.8 million borrowers have received restructured mortgages through HAMP, Federal Housing Administration and proprietary programs during the 12-month period ending April 30, 2010. "This is nearly three times the number of foreclosures completed during this same period," Secretary Donovan said.

As of May 30, 429,700 borrowers had dropped out of HAMP trials.

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