Industry NewsMortgage

April sees record home loan workouts

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Members of the HOPE NOW coalition of mortgage loan servicers say they arranged workouts with 183,000 troubled borrowers in April -- a 14 percent increase from March and the largest monthly total since the program was launched in July 2007. The workouts accomplished in April for both prime and subprime borrowers included 106,000 repayment plans and 77,000 loan modifications. The group said HOPE NOW loan servicers have now engaged in 1.56 million workouts, in which lenders agree to repayment plans, loan modifications or other measures to avoid foreclosure. The group said interest rates on 603,000 subprime hybrid adjustable-rate mortgage (ARM) loans were scheduled to reset in the first four months of the year. Of those loans, 5 percent have been modified -- most for five years or longer. Another 273,000 loans, or 45 percent, were paid in full as the homeowner refinanced the loan or sold the property. Of loans that were current when they reset, only 927, or 0.3 percent, have ...