Latest Home Mortgage Report Released
Home mortgage modifications increase during the first quarter of this year. However, home mortgage delinquencies and even foreclosures also increased. This was according to a statement released by bank regulators of the country.
The report show that the quality of loan modifications actually improved, as more than 50 percent have already resulted in lower monthly home mortgage payments and even interest rates. However, the report also shows that the economy is still weighing down on borrowers. There are still a lot of unemployment cases, sending mixed signals about the economy.
According to John Dugan, Comptroller of the Currency, he is very much concerned about the increase in delinquency and foreclosures. However, he says that the changes of lending companies to more sustainable and more beneficial programs would show results in the coming months. He adds that future reports should be better and should show improvements, as the Making Home Affordable program of the Obama administration is expected to help borrowers keep up with their home mortgage loans.
In a separate report, the prices of single-family homes in the US are reported to have declined already. However, the pace had changed and had been moderated. This was according to date released by Standard & Poor’s/Case Shiller indexes. In some regions, the stability has already been evident.
The government reports show that lending companies released more than 180,000 home mortgage loan modifications in the first quarter, increasing the number by around 55 percent. The report also shows delinquencies increase by around 9 percent. Home mortgage loans that are delayed by 60 percent or more are considered to be delinquents. Prime loans had the most increases in delinquencies, seeing an increase by more than 20 percent from the previous quarter. Foreclosures also increased by 22 percent in the first quarter.
Home mortgage loans still remains to be a burden for most homeowners. As they lose their jobs, they face serious foreclosure threats. As the housing industry is the area that has been greatly damaged by the recession, it has also received a lot of attention.
The government has launched programs that aim to help homeowners and borrowers. As the months go by, homeowners hope for the best for their houses.
