Each month, the mortgage industry continues to be hit with rising delinquencies and foreclosures. According to the Mortgage Bankers Association (MBA), the 30-day national delinquency rate for the fourth quarter of 2008 was 7.88 percent, up from 6.99 percent in the third quarter and 5.82 percent in the fourth quarter of 2007. This jump represented the largest quarterly increase in the 38-year history of MBA's National Delinquency Survey. * Mortgage servicers, investors, counseling agencies, government-sponsored enterprises (GSEs), industry organizations and the federal government have all launched collective and separate efforts to help reduce delinquencies, foreclosures and real estate-owned (REO) property inventories, and also proactively assist those in financial hardship who may not yet be delinquent on their mortgages. * In March, the Obama administration announced its program to address the housing problem that has significantly affected the rest of the economy. The new program is being called the Homeowner Affordability and Stability Plan (HASP). The administration sought to address three main issues--providing low-cost refinancing options for homeowners whose properties are now underwater; allocating $75 billion to preventing foreclosures by giving incentives to mortgage servicers to perform loan modifications; and supporting low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac. Experts from around the globe have weighed in on the efficacy of the plan, but one thing is apparent: If the plan increases homeowner education and vigilance, it will help the mortgage industry. The plan also addresses the issue of vigilance by encouraging more homeowners to reach out to their mortgage servicers and proactively work to avoid foreclosure.
