Home Affordable Modifications Weak at Wells, Bank of America

August 4, 2009 No Comments »

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More than 230,000 trial loan modifications have been offered to struggling homeowners under the Home Affordable Modification Program (HAMP) since inception, according to a report released today by the Treasury.

The pace of modifications is expected to result in assistance for up to 3 to 4 million homeowners over the next three years, but some of the largest banks seem to be falling short.

Wachovia Mortgage said trial loan modifications started as a share of estimated eligible 60+ day delinquencies was just two percent.

The numbers were similarly abysmal at mortgage lenders Bank of America and Wells Fargo, at four percent and six percent, respectively.

That prompted the Obama Administration to ask servicers to ramp up implementation so 500,000 trial loan mods would be in effect by November 1.

Saxon Mortgage Services got top marks, with a quarter of those in similar trouble receiving a trial loan modification through the program.

Wells Fargo took jabs at the program and was quick to point out that it modified a large number of loans via its own loss mitigation programs; the bank said it was in the process of creating a streamlined process for offering HAMP trial modifications at point of contact.

The good news is that 100 percent of the borrowers receiving trial modifications via HAMP have had their monthly mortgage payments reduced, a key component to success according to related reports.

More than 85 percent of the mortgage market is covered by the program’s participating loan servicers.

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