Modifications hit 5 million

The HOPE Now Alliance recently reported that more than 5 million U.S. homeowners have modified their home loans since the financial industry revamped its lending practices.

"Four years ago there were close to zero loan modifications. It was a barely measurable data point," said John Dalton, president of the Housing Policy Council of the banking industry's Financial Services Roundtable. "Quite simply, the homeowner either paid his or her mortgage or the house went into foreclosure."

The Atlanta Journal Constitution reported that the finance industry and nonprofit organizations came together to form the HOPE Now Alliance Campaign four years ago. The goal of the project was to help struggling homeowners find information and resources to help modify their mortgages and take advantage of low mortgage rates.

According to the Palm Beach Post, Ocwen Financial has been working with the alliance and has serviced 700,000 mortgages nationwide worth more than $100 billion. Ocwen introduced a new plan that lowers the amount borrowers owe on an underwater mortgage but still asks for a share in the appreciated value of the home after it is sold or refinanced.

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