Chase and Barclays' HomeEq Join HAMP
JP Morgan Chase Bank (JPM) and HomeEq, the servicing arm of Barclays PLC (BCS), joined the Home Affordable Modification Program (HAMP), according to a US Treasury report released last week. HAMP allocates funds from Troubled Asset Relief Program (TARP) to servicers as interest rate subsidies or to distribute to participating lender/investors or borrowers. Based on the latest TARP financial report, the Treasury allocated $20.7bn in funding caps to the servicers. The Treasury adjusts caps based on actual participation in the program. The Treasury allocated a cap of $2.7bn to JPMorgan Chase Bank and $674m to HomeEq Servicing. Three other servicers, EMC Mortgage Corporation, Lake City Bank and Oakland Municipal Credit Union joined the program and received caps of $707m, $420,000 and $140,000 respectively. Today OneWest Bank officially joined HAMP, implementing the program across its entire portfolio. Since March 2009, OneWest modified nearly 15,000 loans under the FDIC modification program and more than 3,600 with HAMP, according to a corporate release. HousingWire recently reported Litton Loan Servicing, the servicing arm of Goldman Sachs (GS), also joined HAMP, although the Treasury has yet to post the official cap amount granted to Litton. The Association of Community Organizations for Reform Now (ACORN) lobbied for more modifications and for more participation in HAMP by both Barclays and Goldman Sachs. Write to Jon Prior.