Servicers participating in the Home Affordable Modification Program (HAMP) pushed the total number of permanent modifications to 389,198 through June, a roughly 15% increase from the more than 340,000 the previous month, according to the Treasury Department. It is also the first report to include delinquency rates among those with permanent modifications. The Treasury launched HAMP in March 2009 to provide incentives to servicers for the modification of loans on the verge of foreclosure. In order to receive a permanent modification through the program, borrowers must make three monthly payments during the trial period and submit all documentation. In June, servicers converted 51,205 trial modifications into permanent status with 8,823 permanent modifications canceled, including 195 mortgages that borrowers paid off. According to the Treasury, cancellations continue to rise as servicers comply with Treasury guidance to make decisions on aged trials. Of the cancellations in June, 60% had been in trial modifications for six months or longer. But, according to the report, servicers have canceled more trial modifications than they’ve converted into permanent status. Servicers have canceled more than 520,000 trials since the program launched last year, compared to the 398,021 converted into permanent status in the same time. The Treasury also reported on the performance of past permanent modifications under HAMP. For those 3,643 mortgages permanently modified in Q309, 7.8% had fallen into 60-plus day delinquency six months after the conversion from a trial period. Of the 126,527 mortgages that received permanent modifications in Q110, 4.1% have fallen behind by 60 days or more, and 1.3% are 90-plus days delinquent, three months following the modification. The Obama Administration set an early goal for 3m to 4m borrowers to receive aid under HAMP before the program expires at the end of 2012. After 15 months, servicers have reached over 13% of that mark, up from just over 10% in May. Servicers have offered 1.5m three-month trial modifications through June and have started 1.2m of them.  There are currently 364,077 active trial modifications. Servicers reported 38,728 new trials in June, an increase from 30,099 new trials reported in May. Borrowers receiving a permanent modification received an average 36% discount on their monthly payments for an average of more than $500 a month. According to the Treasury, borrowers with a permanent modification are guaranteed lower payments for five years and fixed terms at current market rates for the remaining life of the loan. HomeEq, the former servicing arm of Barclays Capital and recently bought by Ocwen Financial Corp. (OCN) was the top HAMP servicer for the third consecutive month. It converted 89% of its trial modifications into permanent status, the highest of any servicer. It has converted 3,793 permanent modifications and holds 16,089 HAMP-eligible loans. Carrington Mortgage Services moved from third in May to second in June. It had a conversion rate at 80% in June, totaling 2,019 permanent modifications. In third was Wachovia Mortgage FSB, which converted 77% of its trials into permanent status. It has conducted 3,594 permanent modifications and holds 30,957 HAMP-eligible loans. The big-four banks all had slight conversion rate increases in June. JPMorgan Chase (JPM) led them by converting 29% for a total of 54,722 permanent modifications through June, up from 47,467 in May. CitiMortgage, the servicing arm of Citigroup (C) converted 28% as well, totaling 40,813 permanent modifications, up from 34,675 the previous month. Wells Fargo (WFC) had a 27% conversion rate, totaling 44,628 permanent modifications, up from 40,759 in May. Bank of America (BAC) holds the highest amount of permanent modifications of any participating servicer in June, at 72,232, up from 62,969 the previous month, a 26% conversion rate. BofA holds 469,905 HAMP-eligible loans. Write to Jon Prior. The author holds no relevant investments.