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ยป VISIT US ONLINE @ DSNEWS.COM ADMINISTRATION WARNS DELINQUENCIES REMAIN HIGH DESPITE DECLINES Foreclosures and mortgage delinquencies may be declining, but that doesn't mean the industry should let its guard down. In releasing the Obama administration's housing scorecard in mid-July, officials continued to warn of a "fragile" recovery despite improvements. Recently, Lender Processing Services reported delinquencies have fallen 43 percent from their 2010 peak, while RealtyTrac found foreclosure starts decreased 45 percent year-overyear in June. "Foreclosure starts and completions are down significantly from one year ago; and since January 2012, rising home values have lifted 2.4 million homeowners back above water. That said, we remain cautious because although mortgage delinquencies are trending down, they still remain quite high compared to historic norms," said Kurt Usowski, assistant secretary for economic affairs at HUD. To further prevent foreclosures, the administration is continuing its mortgage relief efforts through national programs. So far, the Making Home Affordable program has provided more than 1.6 million homeowner assistance actions, of which 1.2 million were through the Home Affordable Modification Program (HAMP), according to the scorecard which was released jointly by HUD and Treasury. Homeowners who received a modification through HAMP trimmed their monthly payments by $547, or 39 percent, on average. In addition, 69 percent of borrowers with non-GSE mortgages received a principal reduction with their HAMP modification in May. "Homeowners who receive help from the administration's HAMP program continue to show success at avoiding foreclosure, which benefits families, communities, and the economy," said Tim Massad, assistant Treasury secretary for financial stability. "HAMP has also put into place important standards for the mortgage servicing industry that have improved outcomes for struggling families more broadly." Along with the scorecard, the administration also released the Making Home Affordable program report, which included an overview of servicer performance when implementing HAMP. After gathering data on the largest servicers participating in the program, the report found 88 percent of HAMP trials started on or after June 1, 2010, were converted to permanent modifications with an average trial length of 3.5 months. Regarding resolutions of issues escalated by distressed homeowners with non-GSE loans, the study found servicers resolved cases within 30 calendar days in the second quarter of this year. STAT INSIGHT 56,000 Residential construction jobs, including specialty trade contractors, added in the first six months of 2013. Source: Trulia's Chief Economist Jed Kolko KNOW THIS Real estate investors who flipped homes in the first half of the year purchased those homes at a discount of 5 percent below estimated market value on average, and sold them at a premium of 1 percent above estimated market value on average, RealtyTrac reports. 47