Servicers have started 650,994 three-month 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. Through HAMP, the Treasury allocates capped incentives to participating servicers for the modification of loans on the verge of foreclosure. The Treasury began releasing progress reports after the Obama Administration set a goal of reaching 3m to 4m homeowners over the next three years. The updated report, which measures performance through October from the Treasury, indicates: Saxon Mortgage Services continues to lead all services by starting trial modifications for 44% of its 80,477 eligible portfolio of 60-plus day delinquent loans, an increase from 39% from the September report. Bank of America (BAC) started 136,994 trial modifications, the most on a gross volume basis, which is 14% of its eligible portfolio, an increase from 94,918 started through September or 7% of its portfolio. The bank also holds 990,628 eligible loans in its portfolio, the most for any participating servicer. Other notable performances include: CitiMortgage starting trial modifications for 40% of its 221,916 eligible loans, up from 23% through September and the second highest percentage of the servicers; GMAC starting 35% of its 65,946 eligible loans, the third highest percentage; Wells Fargo (WFC) starting 29% of its 323,198 eligible loans, an increase from 11% through September; Litton Loan Servicing starting 12% of its 10,496 in eligible loans, up from 3%. California leads all states with 134,609 active trial modifications. Florida came in second with 82,614 trial modifications, and Arizona rounded out the top three with 34,424 trial modifications. According to the latest Troubled Asset Relief Program transaction report, 72 servicers receive more than $27bn in allocated cap incentives. Write to Jon Prior.