The federal loan modification program, which faces the prospect of becoming irrelevant in a recovering real estate market, continues to generate activity.
The monthly Obama administration report card on the health of distressed U.S. mortgage borrowers indicated that 870,038 loan modifications were active under the Home Affordable Modification Program as of April 30.
That was 3,960 more than were active at the end of March. The gain improved on the 3,442 expansion the prior month.
The increase fell short, however, of the 6,790 gain in April 2012.
Since the HAMP program was initiated, nearly 1.2 borrowers have received a permanent HAMP modification, the report said.
Home sales and home prices have exhibited strength recently.
If the U.S. real estate market continues on a path to recovery, more distressed borrowers will be able to sell for a higher price, and the need for principal reduction will diminish.
GMAC Mortgage LLC had 35,259 active permanent modifications — 4,546 more than at the end of March and the best gain of any servicer. The report indicated that Ocwen Loan Servicing LLC acquired portions of GMAC assets as of Feb. 15.
Wells Fargo Bank, N.A., ended the latest period with 126,729 active permanent HAMPs, 2,314 more than a month earlier.
Ocwen Loan Servicing LLC had 101,667 modifications in place, increasing by 2,205 in March.
An increase of 336 left No. 4 Select Portfolio Servicing at 25,918.
No. 5 CitiMortgage Inc. was up 272 active HAMPs form March to 52,946 as of April 30..
Bank of America, N.A., had a HAMP setback, with active permanent modifications diminishing by 6,978 to 113,524.
The Los Angeles-Long Beach-Santa Ana Metropolitan Statistical Area had the most active permanent modifications of any MSA: 72,501.
At 58,180, the New York-Northern New Jersey-Long Island MSA was the second-biggest.
In Florida, the Miami-Fort Lauderdale-Pompano Beach area followed with 46,565 active permanent modifications in place.
The Chicago-Joliet-Naperville MSA’s 43,592 active permanent modifications followed, then 43,502 in the Riverside-San Bernardino-Ontario MSA.
