A. Loan Modifications and Payment Plans

 Newly Initiated Home Retention Actions

Increased emphasis on loan modifications drove an overall increase in home retention actions.  Newly initiated loan modifications reached 185,156 during the quarter—rising by 55.3 percent from the previous quarter and 172.3 percent from the first quarter of 2008.  The impact of this increase in modifications on reducing foreclosures and enabling borrowers to remain current on their loans will only be seen in future data.  Likewise, modification data through the first quarter do not reflect the impact of the Administration's "Making Home Affordable" program, which was announced in March and began to be implemented after this reporting period.  Overall, newly initiated home retention actions increased to 337,192 during the quarter—rising by 13.7 percent from the previous quarter and by 66.4 percent from the first quarter of 2008 in volume.   Modifications accounted for 54.9 percent of all newly initiated home retention actions during the quarter, compared with 37.8 percent during the previous quarter.¹⁴

  First Quarter 2009

< previous | next >