This morning the U.S. Department of the Treasury and the Department of Housing and Urban Development (HUD) released the July report under the Home Affordable Modification Program (HAMP). According to the report, more than 434,000 homeowners are operating under permanent loan modifications through July 31, up more than 36,000 since the end of June. Despite the increase in permanent modifications, more than 616,000 modifications have been cancelled, an increase of over 96,000 from the previous month. Initial trials continue to drop, with only 24,577 reported in July, compared with 38,728 in June. The total number of modifications (trial and permanent) continues to fall, with 677,738 modifications through the end of July compared with 753,275 in June.
August's Monthly Housing Scorecard was also released this morning, noting this month's slight increase in homeowners having restructured their mortgages (3.15 million) compared to those having gone to foreclosure (1.24 million) since April 2009. However, HUD Assistant Secretary Raphael Bostic commented that "it remains clear that we have more work ahead. Through the Obama Administration's efforts over the past 16 months, we have seen increased price stabilization and improved home affordability for prospective, qualified homebuyers. At the same time, we know that we must continue to provide support to underwater borrowers, unemployed homeowners, and to the nation's hardest hit neighborhoods."