Home Affordable Modifications Increase In August

September 9, 2009 No Comments »

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The Home Affordable Modification Program (HAMP) saw more substantial numbers last month, with 360,165 loan modifications initiated via the program through August, up from 230,000 in July and around 100,000 a month earlier.

Since the program got underway, a total of 571,354 trial period plan offers have been extended to borrowers and 1,883,108 requests for financial information have been sent to borrowers.

Roughly 85 percent of eligible mortgages are covered by HAMP participating loan servicers, but the assistance so far seems to be a bit disproportionate.

Saxon led in trial modification starts as a share of estimated eligible 60+ day delinquencies, with a healthy ratio of 39 percent.

That meant more than 35,000 of the roughly 74,000 borrowers who were 60 days or more behind received a HAMP offer through August.

Saxon was followed by Nationstar, which boasted a 30 percent ratio and GMAC at 26 percent; Chase was a close fourth at 25 percent and CitiMortgage was fifth at 23 percent.

Behemoth mortgage lenders Bank of America and Wells Fargo still lag considerably, with ratios of just seven and 11 percent, respectively.

Of course, they’re probably wondering what to do with all those exploding option arms they acquired via mergers with Wachovia and Countrywide.

Interestingly, PennyMac, the venture headed by former Countrywide execs, made the list, with 903 delinquent loans and zero offers or trial modifications; perhaps it’s just too early for them.

The Home Affordable Modification Program aims to offer assistance to up to 3-4 million struggling homeowners over the next three years.

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