Mortgage Modifications Triple in First Quarter

Washington, DC, June 23, 2010--Loan modifications through the government's Home Affordable Modification Program tripled in the first quarter compared to the fourth quarter, according to the Federal Housing Finance Agency.

Also, loans 60 or more days past due fell for the first time in two years, dropping by nearly 23,800 to about 1.7 million in the first quarter, according to the FHFA's latest quarterly Foreclosure Prevention & Refinance report.

Overall, the FHFA said various efforts to keep homeowners out of foreclosure, including loan modifications, short sales and deeds-in-lieu, rose 75% in the first quarter compared with the previous quarter, to a total of 239,000 completed "foreclosure prevention activity" efforts.

Permanent mortgage modifications through the government's Home Affordable Modification Program rose to 136,000 at the end of the first quarter, up from 43,000 in the fourth quarter. Homeowners must successfully complete a trial modification period in order to make their modification permanent.

About 66% of modifications completed in the fourth quarter reduced borrowers' monthly payments by more than 20%.

Alslo cumulative refinance volume through the Home Affordable Refinance Program rose 53% to nearly 291,600 at the end of the first quarter, up from 190,180 in the fourth quarter.