Industry News

Loan servicers say more subprime borrowers getting help

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Loan servicers participating in the voluntary HOPE NOW coalition say they initiated repayment plans or modified the loan terms of two of every three delinquent subprime borrowers in the second half of 2007 -- almost twice the rate of success previously reported. The new findings were based on revised data that included more complete participation of members of the HOPE NOW alliance, according to a press release announcing the release of the survey. The survey of loan servicers responsible for collecting payments on 33.3 million loans also found that foreclosure starts outnumbered foreclosure sales about 3 to 1, suggesting most borrowers who are foreclosed on are able to avoid losing their homes, at least temporarily. Members of the HOPE NOW alliance have adopted standardized procedures intended to streamline the process of engaging in loan modifications, including freezing the interest rates of adjustable-rate mortgages, in an attempt to prevent foreclosures (see Inman ...