Bookmark this site
NEW YORK, Oct 2 (Reuters) – U.S. mortgage servicing companies permanently eased terms on about 79,000 home loans in August, slightly less than in July, suggesting the practice aimed at preventing foreclosure may be leveling off, according to data published by an industry group on Thursday.
Servicing companies, which collect payments and distribute the money to investors, modified 78,853 loans in August, down from 80,097 in July, said data from Hope Now, a coalition of mortgage lenders, servicers and counselors. But the level is up from the average monthly pace of 73,442 in the second quarter and less than 50,000 at the end of 2007.
Modifications are increasingly endorsed by lawmakers and regulators since the practice can directly address the crisis of falling home values by reducing principal on loans.
