As percentages for permanent modifications in the government's Home Affordable Modification Program (HAMP) have increased to double digits, Fifth Third Mortgage Co. reports it is continuing to outpace the national average.
Of the 89% of Fifth Third Mortgage's portfolio eligible for HAMP consideration, 53% of trial plans started have been converted to permanent modifications. According to U.S. Treasury data recently released for March, that percentage is more than two-and-a-half times the national average of 19.8%.
‘The efforts to provide what is best for our customers truly show in our high modification conversion rate,’ says Steve Alonso, executive vice president of consumer lending and mortgage at Fifth Third Bank. ‘We continuously work to convert customers eligible for the program.’
Fifth Third uses HAMP on its Fannie Mae-and Freddie Mac-owned mortgages, per the government-sponsored enterprises' guidelines. The U.S. Department of Housing and Urban Development (HUD) created a program similar to HAMP for the mortgages it owns and the bank services. Both programs require a three-month trial modification period before being converted to permanent status.
Fifth Third continues to use its ‘You Have Options’ program for bank-owned mortgages instead of the government's HAMP program. The program, which Fifth Third says is tailored to each borrower's financial situation, allows the bank to offer flexible term and rate concessions.
Source: Fifth Third Bancorp