September 1, 2010
New data compiled by the Woodstock Institute shows that the number of Chicago-area households taking part in trial and permanent home mortgage modifications is now at its lowest regional level since the federal Home Affordable Modification Program (HAMP) was launched. There were 34,576 active modifications in the Chicago region in July 2010 compared to 36,208 in November 2009, the first month the Treasury Department released data by metro area. From a Woodstock press release:
HAMP’s momentum appears to be slowing, as permanent modification growth slows and the number of trial modifications decreases more sharply. Chicago region permanent loan modifications rose by 9 percent from June to July, compared to 15 percent growth from May to June and 17 percent growth from April to May (see charts A and B). Regional trial modifications fell by 30 percent from June to July, which is the third month in a row of month-over-month losses above 20 percent. Total modification activity in the Chicago region fell by 9 percent from June to July.
It’s rumored that the Obama administration might overhaul HAMP in the coming months.