Principal Reduction Loan Modifications Needed Indicates New Survey Of Housing Counselors

Principal reduction loan modifications

Principal reduction loan modifications needed

Yesterday we posted a story about the new CRC survey conducted in January and February 2012. The survey collected responses from more than 70 counselors representing 50 nonprofit housing counseling agencies across California that collectively serve thousands of borrowers a month.  This survey marked the CRC’s eighth version since 2007.

Here we post an important update about loan modifications:

Finding #2:  Principal reduction loan modifications are needed, financially feasible, but still rare. 84% of counselors indicated that the Big 4 Servicers “always” or “almost always” fail to reduce principal when granting modifications. Counselors reported that banks were much more likely to reduce principal on loans that they owned, rather than those that they serviced.  This stark contrast indicates that banks are not operating in the best interest of investors.

Principal reduction loan modifications

Principal reduction loan modifications

Principal reduction loan modifications

Principal reduction loan modifications

Principal reduction loan modifications

Principal reduction loan modifications

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3 Comments

Filed under Banks, California, Loan Modifications, Mortgages

3 responses to “Principal Reduction Loan Modifications Needed Indicates New Survey Of Housing Counselors

  1. Pingback: The 80-10-10 Loan Returns | Resource Blog

  2. Pingback: Principle Reduction On Mortgage Proves To Be More Effective Way To Prevent Foreclosures | Resource Blog

  3. Pingback: Bank Of America Principle Reductions On Loan Modifications | Resource Blog

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