Industry Efforts Track Mortgage Woes

The mortgage industry modified 133,910 mortgages in March, according to the industry alliance HOPE NOW. The data marks the second consecutive month of just under 134,000 recorded modifications, more than half of total workouts plans in March. Repayments accounted for another 115,000 workouts initiated. “The lending industry is steadily working out solutions for homeowners and keeping as many as possible in their homes,” HOPE NOW executive director Faith Schwartz says in a statement. Prime mortgages continued a growing trend in March. Prime mortgages accounted for 48% of all workouts in March, up from 44% in February, according to HOPE NOW’s data. The industry appears to be keeping abreast of the trend, as HOPE NOW’s data show an influx of workout effort in the prime category. In March, there were more than four prime mortgage workouts to every one prime foreclosure — up from almost two prime workouts to each prime foreclosure in February — and more than five subprime mortgage workouts to every one one subprime foreclosure in the month. Completed foreclosure sales dropped 40% from February, while repayment plans rose 4% and modifications remained unchanged at less than +0.1% over last month’s figure. Total prime workout plans increased 11% from February, while the industry modified 4% more prime mortgages this month than last month. Read HOPE NOW’s report. Write to Diana Golobay at [email protected].