AHMSI Details HAMP Involvement

an Home Mortgage Servicing Inc. (AHMSI) has formally announced its participation in the Home Affordable Modification Program (HAMP). The company, which services a $102 billion Alt-A and subprime portfolio, had been under attack by ACORN for allegedly dodging participation in the federal government's foreclosure prevention plan. Last week, AHMSI spokesperson Christine Sullivan released a press statement that refuted ACORN's claims and indicated the company was finalizing a contract with Fannie Mae, HAMP's administrator. The Treasury has allocated a cap of $1.272 billion as interest-rate subsidy and incentive payments, which potentially can be earned by AHMSI, borrowers and investors of successfully modified loans under HAMP. "We're extremely pleased to have worked through many details of the program with the Treasury and its financial agent, Fannie Mae," says David Friedman, AHMSI CEO. "They have been very cooperative and professional partners in this process. We are glad to be a part of the program." HAMP's modification guidelines are generally in line with AHMSI's loss mitigation strategies, Friedman added. According to the company, AHMSI completed more than 64,000 loan modifications during the 12 months ending June 30, including nearly 37,000 modifications in the first six months of 2009. This number of modifications represents more than 15% of AHMSI's entire portfolio and more than 50% of the average 30+ day delinquency. At the end of May 2009 and based on the prior 18 months of data, almost 72% of borrowers whose loans were restructured are current after six months, AHMSI says. In 86% of AHMSI modifications, borrowers experienced a payment reduction, with the average reduction being about $544, or 30.5%. SOURCE

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