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PRIVATE-PUBLIC COLLABORATION RESULTS IN 8M FORECLOSURE PREVENTIONS Collaboration between the private and public sectors has resulted in 8 million non-foreclosure solutions completed for at-risk families since 2007, according to HOPE NOW, a voluntary alliance of mortgage servicers, investors, mortgage insurers, and nonprofit housing counselors. Over the last six years, the mortgage industry has completed more than 6.71 million permanent loan modifications, HOPE NOW's data shows. Of those loan modifications, more than 5.4 million were made through servicers' proprietary programs and 1,268,635 were completed under the federal government's Home Affordable Modification Program (HAMP). In addition, since December 2009, short sales total about 1.39 million. HOPE NOW reports approximately 181,000 homeowners received permanent loan modifications from mortgage servicers during the third quarter of 2013—136,000 of which were proprietary and 45,136 HAMP mods. Looking at non-HAMP loan modifications from the month of September, HOPE NOW's report cites key characteristics that generally go hand-in-hand with more sustainable mortgages. The alliance says mods that included fixed interest rates of five years or more accounted for 22 93 percent of the month's total modifications. Seventy-six percent reduced borrowers' principal and interest monthly payments, and for 71 percent the principal and interest payment reduction was more than 10 percent. Short sales totaled about 67,000 during the July-to-September period, with 19,000 completed in the month of September, according to HOPE NOW. That monthly total is down 17 percent from 28,000 completed short sales in August. Foreclosure starts were estimated at 93,000 in September versus 99,000 in August—a decline of 6 percent. However, for the full third quarter, some 290,000 foreclosures were initiated, compared to an estimated 499,000 started during the third quarter of 2012. Completed foreclosure sales tallied an estimated 51,000 in September, down 12 percent from the 58,000 foreclosure sales recorded for the month of August. Delinquencies of 60-plus days were approximately 2.08 million in September, representing virtually no change from August, according to HOPE NOW. All key metrics in HOPE NOW's report were down when comparing Q 3 2012 to Q 3 2013. Loan mods declined 22 percent, from 233,000 to approximately 181,000. Short sales slipped even further with a decline of 39 percent, from 109,000 in the third quarter of 2012 to just 67,000 in the third quarter of 2013. At the same time, however, foreclosure sales dropped 15 percent annually, from 196,000 in Q 3 2012 to 167,000 in Q 3 2013. HOPE NOW executive director, Eric Selk, said the agency firmly believes the eight million foreclosure alternatives completed by the group since 2007 "are proof of the success of the unprecedented collaboration between the private and public sectors." OVER THE LAST SIX YEARS, THE MORTGAGE INDUSTRY HAS COMPLETED MORE THAN 6.71 MILLION PERMANENT LOAN MODIFICATIONS.

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