HAMP Servicers Offer 570,000 Trial Modifications
Servicers offered more than 570,000 mortgage modifications and started 360,000 trial modifications for borrowers under the Home Affordable Modification Program (HAMP) since its launch in March 2009, according to an updated servicer performance report by the US Treasury Department. HAMP provides incentive caps to servicers for modifying delinquent loans and adjusts those caps based on performance. The Treasury began releasing progress reports after the Obama Administration set a goal of reaching 3m to 4m homeowners over the next three years. Yesterday, a House committee held a hearing to determine if the program would reach that goal. Treasury and Housing and Urban Development (HUD) officials testified the program was on track. The updated performance report from the Treasury indicates Saxon Mortgage Services leads all servicers by starting trial modifications for 39% of its 73,694 eligible 60+ day delinquent loans, an increase from 25% when HousingWire reported on HAMP progress at the beginning of August. JP Morgan Chase (JPM) started 106,288 trial modifications, the most on a gross volume basis, which is 25% of its eligible portfolio. The number of initiated modifications increased from 79,304 last month. Bank of America (BAC) holds 835,680 eligible loans, more than any other servicer, but has started trial modifications on 7%, an increase from 4% a month ago. Other notable performances include: CitiMortgage starting 23% of its 191,128 eligible loans; Wells Fargo (WFC) starting 11% of its 292,515 eligible loans; Litton Loan Servicing starting 3% of its 103,871 eligible loans; and Wachovia Mortgage starting 2% of its 74,231 eligible loans. According to the latest Troubled Asset Relief Program transaction report, 50 servicers participate in HAMP for a total of $22.1bn in total cap adjustments. Write to Jon Prior.