Six More Servicers Join HAMP
Six more servicers joined the Home Affordable Modification Program (HAMP), pushing the total number of participants to 63, according to the most recent Troubled Asset Relief Program’s (TARP) transaction report. AMS Servicing leads the new inductees with $4.3m in cap incentives. Bay Federal Credit Union receives a $410,000 cap; Schools Financial Credit Union receives a $390,000 cap; Yadkin Valley Bank gets a $240,000 cap; Glass City Federal Credit Union receives a $230,000 cap; and Central Jersey Federal Credit Union is allocated $30,000 in capped incentives. Cap payments represent the potential total amount allocated to the servicer. With the new participants, the 63 servicers now receive over $22.2bn in adjusted caps. Chase Home Finance leads all servicers with $3.5bn in allocated cap incentives, according to the TARP report. The Obama Administration introduced HAMP in March 2009 in an effort to provide capped incentives to servicers for the modification of distressed loans. The US Treasury Department adjusts those caps based on performance. To provide transparency to the servicer’s performance, the Treasury announced plans to publish ratings on servicer quality when reaching out to eligible borrowers. The report would go along side the TARP transaction report, which displays cap incentives, and the servicer performance report, which shows the servicer’s progress in modifying their portfolios. Saxon Mortgage Services leads all servicers in percentage of mortgages modified, according to the most recent progress report, by modifying 39% of its eligible portfolio. Write to Jon Prior.