US Bank Pushes Total HAMP Servicers to 53
Three new banks joined the Home Affordable Modification Program (HAMP), according to the transaction report for the Troubled Asset Relief Program (TARP). HAMP provides cap incentives to servicers for the modification of delinquent loans or loans on the verge of default. The program adjusts the caps based on performance. Since the Obama Administration launched the program in March 2009, HousingWire reported that participating servicers offered more than 570,000 modifications and started more than 360,000 trial modifications. US Bank National Association received $114m in cap incentives, according to the TARP report. Central Florida Educators Federal Credit Union and CUC Mortgage Corporation also signed agreements with the US Treasury Department, receiving caps of $1.25m and $4.35m respectively. With the new additions, 53 HAMP servicers now receive $22.2bn in total cap incentives, up from $20.6bn in August. Last week, a House committee held a hearing to determine if HAMP would reach its target of helping 3-4m homeowners and starting 500,000 modifications by Nov. 1, 2009. In his testimony, Michael Barr, the Treasury assistant secretary for financial institutions reported that HAMP was on track to reach 4m borrowers over the next three years. Write to Jon Prior.