Feds: HAMP's 2nd-Lien Program at 123,000 Modifications

Feds: HAMP's 2nd-Lien Program at 123,000 ModificationsU.S. Treasury and Housing officials released the latest update on the government’s mortgage modification program Friday, including new data on its Second Lien Modification Program (2MP).
More than 123,000 reductions in second liens have been completed through November, according to the overall update for the Home Affordable Modification Program (HAMP), the Obama Administration’s primary anti-foreclosure effort since 2009 which has been widely criticized for its under-performance.
The administration launched 2MP to address concerns from struggling homeowners grappling with costly second mortgages.
Homeowners in 2MP with an “active permanent modification” save a median of $153 per month on their second mortgage, resulting in a median total first and second lien monthly payment reduction of $784, or 41 percent of their median before-modification payment, U.S. officials reported Friday.
Homeowners who receive a full extinguishing of their second lien receive a median total first and second lien monthly payment reduction of $1,047, or 53 percent of their before-modification payment.
In September 2013, Treasury expanded the 2MP program to include qualifying first liens that have been modified under the modification requirements for mortgages held by Fannie Mae and Freddie Mac.
The most recent overall update on the umbrella program, HAMP, puts permanent first-lien mortgage modifications at 922,067 through November 2013. However, that’s only 43 percent of the initial 2.1 million modification trials initiated.
Here’s the overview from the administration on the latest “Housing Scoreboard”:
“Since the beginning of 2012, the number of homeowners underwater has declined by 5.7 million and homeowners’ equity has risen by 55 percent to $9.7 trillion,” said Associate Deputy Assistant Secretary for Economic Affairs Edward J. Szymanoski. “There remains more work to do to address the 6.4 million homeowners who remain underwater; nevertheless, these are encouraging signs that the housing market recovery is providing millions of American homeowners with more economic security.”

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