Mortgage Clearing Corp. Becomes HAMP's 67th Servicer
The number of servicers participating in the Home Affordable Modification Program (HAMP) swelled to 67, according to a report from the US Treasury Department. Through HAMP, the Treasury allocates capped incentives to servicers for the modification of loans on the verge of foreclosure. Those caps are adjusted based on actual participation in the program. Cap payments represent the potential total amount allocated to the servicer to claim as incentive payments or distribute to borrowers and investors. Mortgage Clearing Corp., based in North Chicago, Illinois leads the new servicers with $4.8m in capped incentives. Great Lakes Credit Union received a $570,000 cap. The State Employee Federal Credit Union (SEFCU) in Albany, New York, received a $440,000 capped incentive. United Bank Mortgage Corp. received a $410,00 cap, and Yadkin Valley Bank in Elkin, North Carolina received $240,000 in capped incentives. With the new inductees, the 67 servicers now receive more than $27.2bn in adjusted caps. Countrywide Home Loans Servicing leads all servicers with more than $4.4bn in capped incentives. Saxon Mortgage Services leads all other servicers by starting trial modifications on 41% of its eligible portfolio, according to the Treasury's progress report on HAMP. HAMP servicers reached the 500,000 trial-modification milestone at the beginning of October. But the Congressional Oversight Panel questioned the permanence of those trials, citing that since the program’s launch in March, only 1,711 modifications made it out of the three-month trial and into a permanency. Write to Jon Prior.