2. Permanent Modifications

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Characteristics Report Through March, 2011

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The average savings for borrowers in permanent modifications is $525.94 per month or 37% of the median payment before modification.

 

Permanent Modifications By Modification Step

 

As illustrated in the chart below, all permanent modifications or 100% have received an interest rate-reduction. 59.5% of permanent modifications received a term extension while 30.5% of permanent modifications received a principal forbearance.

					Interest Rate Reduction			100%
					Term Extension			59.5%
					Principal Forbearance			30.5%

 

Dominant Hardship Reasons For Permanent Modifications

 

• 78% of borrowers in permanent modifications were 60-days delinquent or more at trial entry.

 

• The remaining 22% were up to 59 days delinquent or in imminent default.

 

'At Risk of Default' includes borrowers who are up to 59 days delinquent at trial entry as well as those in imminent default. 'In Default' refers to borrowers who are 60 or more days late at trial entry.

 

As illustrated by the chart below, 'Loss of Income' is the dominant reason representing 61% of all permanent modifications. 'Excessive Obligation' represented about 11.5% of all permanent modifications. 2.8% of permanent modifications were caused by the 'illness of the principal borrower'.

 

'Loss of Income' depicted in the chart below, includes borrowers who are employed but faced a reduction in hours/wages as well as those who have lost their jobs.