Making Home Affordable Numbers Slow in August

September 22, 2010 No Comments »

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Loan servicers completed 33,342 new permanent loan modifications under the Making Home Affordable program (HAMP) in August, down from 37,000 a month earlier, according to the Treasury report released today.

It was the slowest month so far this year as the program apparently continues to wind down – trial modifications started totaled just 17,878.

At the same time, 46,699 trial mods and 6,209 permanent mods were canceled.

The most common causes of cancellation included insufficient documentation, missed trial payments, or debt to income ratios that were already less than 31 percent of gross household income.

Servicers reported that more than half of homeowners in canceled trials received alternative loan modifications or became current, and fewer than 15 percent are headed toward foreclosure.

In total, 1,334,117 trial modifications and 468,058 permanent modifications have been started since the program began.

The aggregate reduction in monthly mortgage payments for borrowers in active trial and permanent modifications now totals more than $3.1 billion.

Bank of America Leader in Permanent Loan Modifications

Bank of America continues to lead in total permanent mods with 79,859, followed by Chase with 60,932, and Wells Fargo with 48,830.

Based on the estimated 5.5 million homeowners who are currently 60+ days delinquent, 1.3 million homeowners are eligible for HAMP.

This number is expected to rise as more homeowners become seriously delinquent between now and the end of 2012.

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