Fifth Third HAMP conversion rate doubles servicer average
Fifth Third Mortgage Company, the servicing subsidiary of Fifth Third Bank (FITB) has converted 77% of its trial plans through the Home Affordable Modification Program into permanent status. The Treasury Department launched HAMP in March 2009 to provide incentives to servicers for the modification of mortgages on the verge of foreclosure. Through October, the participating servicers have started roughly 519,000 permanent modifications for an average 35% conversion rate. Servicers convert a trial after three months of current payments under the new terms and after all financial documentation is in, though the banks have built a backlog of 69,000 that have lasted longer than six months. A spokesman for Fifth Third said the bank did not disclose the actual numbers of its HAMP portfolio. The Treasury only discloses HAMP data on the largest servicers. According to a footnote in the October report, other servicers hold less than 5,000 HAMP-eligible loans in delinquency by 60 days or more. "The past several months have seen a lot of negative information about the mortgage industry, particularly along the foreclosure front," said Steve Alonso, executive vice president of consumer lending, mortgage and business banking for Fifth Third. "Fifth Third Bank is committed to helping keep our customers in their homes, and we are continuing to work hard converting eligible customers into the government's HAMP program." Write to Jon Prior.