To date there have been nearly 350,000 permanent mortgage loan modifications under the HAMP program. The HAMP program is averaging 50,000 permanent modifications each month. The median payment reduction that a home owner receives is 36% which equates to a little more than $500 per month. The homeowners to receive a loan modification are guaranteed a lower payment for 5 years, then they receive a fixed rate at today's low rates for the life of the loan.
Since it's inception, HAMP, has resulted in $3.1 billion dollars worth of lower payments. The median savings is $514.31, or a 36% reduction of the median before loan modification payment. The median Front End Debt-to-Income Ratio before a loan modification was 44.8%. After the loan modification the median DIR is 31.0%. The median monthly payment before the loan modification was $1,425.53 and after the modification is $836.85.
71% of all homeowners who qualified for the HAMP loan modification program were in default at the start of the trial period offered through HAMP. 22.9% of all people who received a modification through HAMP were at risk of default at the start of the trial period.
