Mortgage loan modifications are dropping, according to a July 5, 2009 article in the New York Times,
Alan M. White, an assistant professor at the Valparaiso University law school in Indiana, analyzed data on 3.5 million mortgages written in 2005 through 2007. These mortgages are serviced by five of the nation’s largest loan servicing companies, including Bank of America, Chase Home Finance and Litton Loan Servicing.
Mr. White found that mortgage modifications peaked in February 2009 and have declined in all but one month since. While servicers modified 23,749 loans in February, they changed only 19,041 in May and 18,179 in June. This is exactly when servicers were supposed to be responding to the government’s loan modification plans.
In the meantime, foreclosures keep on rising. In June 2009, 281,560 were in process, slightly above the 277,847 in May. Last January, there were about 242,000 foreclosures in process in the analyzed mortgages.
Mr. White said, “I was hoping we would see some impact in June of the government’s program. Is ‘Home Affordable’ working? My short answer is no.”
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